71% chance of RBA hike? These ASX dividend shares still beat rising interest rates

The Reserve Bank of Australia (RBA) will hand down its latest interest rate decision later today.

According to the latest cash rate futures, the market is currently pricing in a 71% probability that the central bank will lift the cash rate by 25 basis points to 4.1%.

Higher interest rates can make income-focused investments such as term deposits more attractive. However, a number of ASX dividend shares continue to offer dividend yields comfortably above the current cash rate while also providing the potential for capital growth.

Here are three dividend shares that could still be worth considering.

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that could be worth a closer look is HomeCo Daily Needs REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties across Australia. These include shopping centres and large-format retail locations anchored by tenants such as supermarkets, liquor stores, and other essential retailers.

Because these types of businesses tend to generate consistent customer traffic regardless of economic conditions, the trust benefits from relatively stable rental income and very high occupancy rates.

Importantly for income investors, HomeCo Daily Needs REIT is known for offering an attractive distribution yield that sits comfortably above current interest rates.

The company is guiding to a dividend of 8.6 cents per share in FY 2026. Based on its current share price of $1.22, this would mean a dividend yield of 7%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth considering is Rural Funds Group.

The agricultural real estate investment trust owns a diversified portfolio of farming assets across Australia. These include properties used for almonds, cattle, vineyards, macadamias, and cropping.

Rather than operating the farms directly, the trust leases these assets to agricultural operators under long-term agreements. This provides a stable and predictable rental income stream that supports its distributions to investors.

Agricultural land can also benefit from long-term structural trends such as rising global food demand and limited supply of productive farmland.

Combined with a distribution yield that sits well above the current cash rate, Rural Funds Group could remain an attractive income option.

Rural Funds expects to pay shareholders an 11.7 cents per share dividend in FY 2026. Based on its current share price of $2.10, this equates to a dividend yield of 5.6%.

Transurban Group (ASX: TCL)

A final ASX dividend share that could be worth a look is Transurban Group.

This infrastructure giant owns and operates major toll roads across Australia and North America. These assets play a critical role in major transport networks and typically generate steady traffic volumes over time.

Its portfolio includes CityLink in Melbourne, Cross City Tunnel in Sydney, the Logan Motorway in Brisbane, and 95 Express Lanes in the United States.

One of Transurban’s key advantages is the long-term nature of its toll road concessions. Many of its assets operate under agreements that run for decades, providing strong visibility over future revenue.

Transurban is guiding to a 69 cents per share dividend for FY 2026. Based on its current share price of $14.32, this would mean a dividend yield of 4.8%.

With a yield that sits comfortably above the current cash rate and infrastructure assets that generate reliable cash flows, Transurban could be a compelling option for investors seeking income.

The post 71% chance of RBA hike? These ASX dividend shares still beat rising interest rates appeared first on The Motley Fool Australia.

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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 Rural Funds Group and Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.