On Tuesday, the Reserve Bank of Australia lifted the cash rate by 25 basis points to 3.85%.
That move is likely to translate into slightly higher returns on savings accounts and term deposits in the months ahead. But even with rates moving higher, income investors are not short of alternatives.
In fact, the ASX still offers dividend yields that comfortably beat bank interest rates, with the added bonus of potential capital growth over time.
With that in mind, here are three ASX dividend shares that could still be worth considering for income-focused investors.
Centuria Industrial REIT (ASX: CIP)
The first ASX dividend share that could beat bank interest rates is Centuria Industrial REIT.
It owns a diversified portfolio of industrial properties, including warehouses, logistics facilities, and distribution centres leased to a broad range of tenants. These assets tend to benefit from long lease terms and rental increases that help support predictable income.
While higher interest rates have weighed on the broader REIT sector, industrial property fundamentals have remained relatively resilient. Demand for well-located logistics and warehousing space continues to be underpinned by e-commerce and supply chain investment.
Bell Potter is bullish on the company. It has a buy rating and $3.75 price target on its shares.
As for income, the broker is forecasting payouts of 16.8 cents per share in FY 2026 and 17.3 cents per share in FY 2027. Based on its current share price of $3.21, this would mean dividend yields of 5.2% and 5.4%, respectively.
Harvey Norman Holdings Ltd (ASX: HVN)
Another ASX dividend share that still stands out is Harvey Norman.
This retail giant operates across furniture, electronics, and homewares, and while discretionary spending has been under pressure, Harvey Norman’s business model provides some insulation. Its franchise structure, strong property backing, and net cash position give it flexibility through the cycle.
Even after the latest rate hike, its dividend potential remains well ahead of what most bank deposits can offer.
For example, Bell Potter, which has a buy rating and $8.30 price target on its shares, is expecting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027.
Based on its current share price of $6.51, this would mean dividend yields of 4.8% and 5.4%, respectively.
Transurban Group (ASX: TCL)
A final ASX dividend share to consider is Transurban. It owns and operates toll roads across Australia and North America, generating revenue from long-dated infrastructure assets that are difficult to replicate.
Traffic volumes tend to grow over time with population and economic activity, providing a long runway for cash flow growth. Importantly, many of Transurban’s toll roads have built-in inflation-linked toll increases. This helps protect income even when inflation and interest rates are elevated.
Citi is a fan of the company and has put a buy rating and $16.10 price target on its shares.
With respect to dividends, the broker expects payouts of 69.5 cents per share in FY 2026 and then 73.7 cents per share in FY 2027. Based on its current share price of $13.88, this would mean dividend yields of 5% and 5.3%, respectively.
The post 3 ASX dividend shares that still beat bank interest rates appeared first on The Motley Fool Australia.
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- The smartest ASX dividend shares to buy with $1,000 right now
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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.