Forget term deposits and buy these ASX dividend stocks

While the yields on term deposits have improved markedly over the last 12 months, they still don’t compare to some of the dividend yields you can find on the Australian share market.

For example, analysts are forecasting bigger than average yields from these ASX dividend shares in the near term. Here’s what they expect:

Accent Group Ltd (ASX: AX1)

Bell Potter is expecting this ASX dividend stock to offer investors significantly larger than average dividend yields in the near term.

This is thanks to “continuing casual footwear trends and as sports, fitness & wellness related spending remains a priority.”

The broker has pencilled in fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.98, this represents dividend yields of 6.55% and 7.4%, respectively.

Bell Potter has a buy rating and $2.50 price target on its shares.

Deterra Royalties Ltd (ASX: DRR)

Morgan Stanley thinks that mining royalties company Deterra Royalties could be an ASX dividend stock to buy.

Particularly if you’re looking for some big dividend yields in the near term. Its analysts expect Deterra Royalties to be in a position to pay fully franked dividends per share of 37 cents in FY 2024 and 34 cents in FY 2025. Based on the current Deterra Royalties share price of $5.02, this will mean yields of 7.4% and 6.8%, respectively.

Morgan Stanley has an overweight rating and $5.65 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Finally, Goldman Sachs thinks that insurance giant Suncorp could be an ASX dividend stock to buy.

Due “in large part the tailwinds that exist in the general insurance market” the broker expects fully franked dividends per share of 77 cents in FY 2024 and 82 cents in FY 2025. Based on the Suncorp share price of $15.57, this will mean yields of 4.9% and 5.25%, respectively.

Goldman has a buy rating and $16.25 price target on its shares.

The post Forget term deposits and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX dividend stocks with yields of 5% to 7.5%
• How investing $100 per week can create $2,000 in annual ASX dividend income
• Why Accent, Cettire, Dicker Data, and Iress shares are dropping today
• Why is the Accent share price sinking 6% today?
• Buy Woolworths and these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Accent Group. 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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