Interest rates have fallen heavily this year and could be heading even lower over the next 12 months.
While this is a blow for income investors, the share market is here to save the day.
For example, the two ASX dividend shares listed below have been named as buys by analysts and tipped to offer attractive dividend yields. Here's what they are recommending:
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Qualitas Ltd (ASX: QAL)
The first ASX dividend share that has been named as a buy is Qualitas.
It is one of Australia's leading alternative real estate funds management firms. It invests capital on behalf of its fund investors throughout the major capital cities of Australia, as well as New Zealand and the United States.
The team at Macquarie is positive on the company and believes it is well-placed to deliver strong earnings growth in FY 2026. It said:
Outperform $3.98 TP. QAL is progressing on its strategy to grow committed FUM and deploy proceeds, benefiting from capital interest in private CRE credit. We believe our forecast 19% EPS growth in FY26 is attractive, even with QAL on 25x earnings following the recent re-rate.
It expects this to underpin fully franked dividends of 11.5 cents per share in FY 2026 and then 13.2 cents per share in FY 2027. Based on its current share price of $3.38, this equates to dividend yields of 3.4% and 3.9%, respectively.
Macquarie has an outperform rating on its shares with a price target of $3.98
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX dividend share that could be a buy according to brokers is Treasury Wine.
It is the wine giant behind popular brands such as Penfolds, Beringer, Wolf Blass, and 19 Crimes.
The team at Morgans thinks that its shares are being undervalued by the market and is expecting some good dividend yields in the near term. It explains:
TWE's FY25 result was in line with guidance, reporting a credible 17% growth in EBITS during a period of macro-economic and category headwinds. TWE is targeting further EBITS growth in FY26, led by Penfolds. We have made modest changes to our forecasts reflecting the disruption associated with a change of distributor in California.
While lacking near term share price catalysts given industry and macro headwinds and a CEO transition, trading on an FY26F PE of only 12.7x, we maintain a BUY rating. A$200m share buyback should provide some degree of share price support.
As for dividends, Morgans is forecasting partially franked payouts of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.09, this would mean dividend yields of 5.8% and 6.5%, respectively.
The broker has a buy rating and $10.10 price target on its shares.
