Forget term deposits and buy these ASX dividend shares

Analysts think these shares could offer better yields than term deposits.

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Man holding a calculator with Australian dollar notes, symbolising dividends.

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Key points

  • With the RBA expected to keep cutting rates, shrinking term deposit yields are pushing income investors to look for higher-yielding alternatives.
  • Bell Potter sees value in Accent Group, forecasting dividend yields of 5.9% in FY26 and 7% in FY27 with a $1.80 price target.
  • Morgans rates Treasury Wine Estates a buy, projecting yields of 5.4% in FY26 and 6.1% in FY27 alongside a $10.10 price target.

Unfortunately for savers and income investors, the Reserve Bank of Australia (RBA) has been cutting interest rates this year.

And with more rate cuts expected over the next 12 months, it looks likely that we are well and truly back in a low interest rate environment.

In light of this, the yields on offer with term deposits could become slender and slender, putting pressure on the income derived from these financial assets.

But don't worry because there are ASX dividend shares out there which could offer a compelling alternative. Here are two that analysts rate as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be a buy is Accent Group. It is a footwear focused retailer that owns a multitude of brands including Platypus, The Athlete's Foot, and Hype DC, as well as exclusive distribution rights for major global brands. In addition, it is rolling out the Sports Direct brand in the ANZ region.

While trading conditions have been tough for Accent over the past 12 month, falling interest rates are expected to boost consumer spending and its performance in FY 2026.

It is for this reason that the team at Bell Potter rates the retailer highly at present. The broker currently has a buy rating and $1.80 price target on its shares.

In respect to dividends, it is forecasting fully franked payouts of 7.8 cents per share in FY 2026 and then 9.2 cents per share in FY 2027. Based on its current share price of $1.32, this equates to dividend yields of 5.9% and 7%, respectively.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX dividend share that could be a buy according to analysts is Treasury Wine.

It is one of the largest wine companies in the world, with a portfolio of premium brands such as Penfolds and Wolf Blass.

While it has also faced challenges over the past 12 months, Treasury Wine has still delivered solid growth thanks to expanding EBITS margins. Despite this, its shares have been hammered and are nearing a 52-week low.

The team at Morgans thinks investors should be taking advantage of this and snap up shares while they are down in the dumps. It has a buy rating and $10.10 price target on them.

As for income, the broker is forecasting partially franked dividends per share of 41 cents in FY 2026 and then 46 cents in FY 2027. Based on its current share price of $7.58, this would mean dividend yields of 5.4% and 6.1%, respectively.

Motley Fool contributor James Mickleboro has positions in Accent Group and Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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