Interest rates have been rising in 2026 in response to concerns around higher inflation.
While this has led to improvements in the rates on offer with savings accounts and term deposits, they still pale in comparison to the dividend yields you can find with ASX stocks on the Australian share market.
In addition, there are stocks out there that analysts think are cheap and could rise strongly from current levels.
Here are two dividend stocks that analysts are recommending to clients:
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Charter Hall Retail REIT (ASX: CQR)
The first ASX dividend stock that analysts are bullish on is Charter Hall Retail REIT.
It is a property company that owns a diversified portfolio of convenience-based retail centres that are anchored by supermarkets, service stations, and essential services.
These assets tend to be highly defensive as shoppers continue to spend on groceries and everyday essentials regardless of economic conditions. In addition, long leases and high-quality tenants provide visibility over rental income.
The team at Macquarie is positive on the company and has an outperform rating and $4.15 price target on its shares. This implies potential upside of 10% for investors from current levels.
As for dividends, the broker is forecasting payouts of 25.5 cents in FY 2026 and then 25.4 cents in FY 2027. Based on its current share price of $3.77, this would mean dividend yields of 6.75% and 6.7%, respectively.
Elders Ltd (ASX: ELD)
Another ASX dividend stock that has been given the thumbs up by analysts is Elders.
It is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia's farming sector.
Elders recently completed the acquisition of Delta Agribusiness, which provides greater exposure to key local retail markets as well as a leading agronomy and farm advisory team.
It is partly because of this deal and its multi-year SysMod project to modernise systems with leading technology solutions that Bell Potter recently put a buy rating and $9.00 price target on its shares. This suggests that the company's shares could rise by approximately 30% between now and this time next year.
As for income, Bell Potter is expecting the agribusiness company to pay shareholders fully franked dividends of 39 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $6.92, this would mean dividend yields of 5.6% and 6.5%, respectively.
