Forget term deposits and buy these ASX dividend shares

The interest rates on offer with term deposits have improved materially over the last 18 months.

However, they still fall short of the dividend yields that can be found on the Australian share market.

In addition, with inflation showing signs of easing, interest rates are now tipped to fall over the next 12 months. This could mean we have already seen the peak for term deposits.

In light of this, it’s possible that income investors will get better outcomes with the buy-rated ASX dividend shares named below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend share to buy according to analysts at Bell Potter. It is the footwear retailer behind brands such as HYPEDC, The Athlete’s Foot, Stylerunner, and Sneaker Lab.

The broker currently has a buy rating and $2.50 price target on its shares.

As for dividends, Bell Potter is expecting some big yields from Accent’s shares. It is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the Accent share price of $1.97, this represents dividend yields of 6.1% and 7.1%, respectively.

Westpac Banking Corp (ASX: WBC)

The team at Ord Minnett still sees plenty of value in this banking giant’s shares despite their strong run. Its analysts recently put an accumulate rating and $28.00 price target on the banking giant’s shares.

In addition, the broker is forecasting some very attractive fully franked dividend yields in the near term. It has pencilled in fully franked dividends of $1.45 per share in FY 2024 and then $1.50 per share in FY 2025. Based on the current Westpac share price of $26.44, this will mean yields of 5.5% and 5.7%, respectively.

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

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More reading

• Better buy: CBA or Westpac stock?
• Buy Westpac and this ASX dividend giant
• Invest $15,000 in Accent stock and get $5,500 in passive income
• How much dividend income would I get from a $20k investment in Westpac shares?
• I’d spend $5k on these ASX 200 shares today to target a $13,080 passive income

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 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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