With interest rates rising, income investors may be wondering whether ASX dividend shares can still compete.
While term deposits and savings accounts are offering improved returns, there are still a number of listed companies providing generous dividend yields along with the potential for capital growth.
Here are two ASX dividend shares that are currently rated as buys by brokers and offer forecast yields above 5%.
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Dexus Industria REIT (ASX: DXI)
The first ASX dividend share that could be worth considering is Dexus Industria REIT.
This real estate investment trust focuses on industrial properties, including warehouses and logistics facilities located in key urban markets. These assets are closely tied to supply chains and ecommerce activity, which has supported strong demand in recent years.
The trust benefits from a diversified tenant base with high occupancy, providing relatively stable rental income. For example, last month, it reported an occupancy rate of 99.7% and a weighted average lease expiry of 5.3 years.
In addition, with around 87% of income subject to fixed rental increases, this can support distribution growth over time.
Speaking of which, the team at Bell Potter is bullish on the company and expects dividends per share of 16.6 cents in FY 2026 and then 16.8 cents in FY 2027. Based on its current share price of $2.40, this would mean dividend yields of 6.9% and 7%, respectively.
The broker has a buy rating and $3.00 price target on Dexus Industria shares.
Transurban Group (ASX: TCL)
Another ASX dividend share that could appeal to income investors is Transurban Group.
The company owns and operates major toll roads across Australia and North America, generating revenue from millions of daily vehicle trips.
What makes this business particularly attractive is the long-term nature of its assets. Many of its toll road concessions run for decades, providing strong visibility over future cash flows.
In addition, toll prices on many of its roads increase annually, often linked to inflation. Combined with traffic volumes continuing to grow from population growth and urbanisation, the company's long-term outlook remains very positive.
With respect to income, the team at Citi is forecasting dividends of 69.5 cents per share in FY 2026 and then 74.5 cents per share in FY 2027. Based on its current share price of $13.90, this would mean dividend yields of 5% and 5.35%, respectively.
Citi currently has a buy rating and $16.10 price target on Transurban shares.
