Forget term deposits and buy ANZ and this ASX dividend share for income: experts

While term deposits are improving, they still don’t come close to some of the dividend yields you will find on the Australian share market.

For example, the two ASX dividend shares listed below have been tipped to provide very generous yields in the coming years.

In addition, with price targets notably higher than where they currently trade, there’s potential capital gains on offer for investors as well. Something term deposits won’t give you.

Here’s why these dividend shares could be great options for income investors right now:

ANZ Group Holdings Ltd (ASX: ANZ)

Rather than putting money into this big four bank’s term deposits, income investors could potentially get a materially better return from its shares.

For example, Citi recently put a buy rating and $29.25 price target on its shares. This implies potential upside of 23% from current levels.

In addition, the broker is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. Based on the current ANZ share price of $23.77, this will mean yields of 7% and 7.4%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that has been tipped as a buy is Dexus Industria. It is a leading industrial and office property company.

Morgans is bullish on the company and has it on its best ideas list with an add rating and $3.25 price target. This suggests potential upside of 18% for investors from where it trades today.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and then 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.75, this will mean yields of 6% and 6.15%, respectively.

The post Forget term deposits and buy ANZ and this ASX dividend share for income: experts appeared first on The Motley Fool Australia.

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More reading

• 3 good reasons I’m avoiding ANZ shares at all costs!
• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?
• Could right now be a great time to buy ASX 200 bank stocks for passive income?
• How I would build a Warren Buffett-style portfolio with ASX 200 shares
• Could ANZ shares cash in on the recent international bank collapses?

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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