The RBA interest rate has jumped this year, allowing savers to achieve term deposit interest rates that start with a 5. However, I’d prefer to invest in certain ASX dividend shares for a couple of key reasons.

Firstly, I’d highlight that this is probably (close to) the peak interest rate for this cycle of rate rises. That means this could be the best interest rate that savers can get and term deposit rates in 12 months could be lower if there are RBA rate cuts next year.

Secondly, we can pick ASX dividend shares that already have a dividend yield similar to (or better than) the term deposit rate, as well as payout growth. Term deposits are stuck paying the same rate, though it is a guaranteed cash return.

As time goes on, I’d expect a good ASX dividend share to pay an increasingly better cash return than term deposits.

Let’s look at two ideas based on the above thought process, with dividend yields of more than 5%.

WCM Global Growth Ltd (ASX: WQG)

This business is a listed investment company (LIC). I really like the LIC structure because it allows for a diversified portfolio to generate investment profits, which can pay a steadily growing dividend.

WCM Global Growth owns a portfolio of between 20 to 40 quality global stocks that have expanding economic moats (strengthening competitive advantages) and business cultures that help unlock the improvement of the economic moat.

With its portfolio net return of an average of more than 15% per year since inception in June 2017, the ASX dividend has consistently increased its annual dividend per share every year since 2019.

It recently upgraded its quarterly dividend guidance to 9.85 cents per share over the next 12 months, which translates into a grossed-up dividend yield of 6.6%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is another LIC that focuses on ASX shares.

It’s invested in the funds of 16 different leading fund managers, providing significant diversification. Future Generation Australia is indirectly invested in more than 430 underlying shares, delivering strong diversification.

One of the reasons why I like this investment is that it has a much smaller allocation to the large ASX blue-chip shares than the overall ASX share market, so I believe the Future Generation Australia portfolio gives more exposure to ASX growth shares, which could perform more strongly over the long-term.

These fund managers are all working pro bono – for free – to enable Future Generation Australia to donate 1% of its net assets each year to youth-focused charities.

This ASX dividend share started paying shareholders dividends in 2015 and has increased its annual payout every year since then. Its guided FY26 payout of 7.6 cents per share translates into a grossed-up dividend yield of 8%, including franking credits, at the time of writing.

The post Forget term deposits! I’d buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wcm Global Growth. 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.

WiseTech Global Ltd (ASX: WTC) shares were under pressure on Wednesday.

The logistics software company’s shares ended the session 10% lower at $40.89.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about the fallen star.

What is the broker saying?

Bell Potter notes that WiseTech delivered a result that was in line with its forecasts but slightly below consensus estimates. It said:

FY26 revenue and EBITDA of US$1,396m and US$558m were in line with our forecasts of US$1,394m and US$561m but slightly below VA consensus of US$1,406m and US$569m. NPAT of US$179m was 11% ahead of our forecast of US$160m and driven by a lower tax rate (19% vs BPe 25%). Cash flow was strong with underlying OCF up 46% and a conversion rate of 100%. The final dividend of US8.8c ff was ahead of our forecast of US8.0c and was driven by the beat in EPS.

Looking ahead, management’s guidance for FY 2027 was better than it expected according to the broker. But once again, it was softer than consensus estimates. It adds:

WiseTech provided FY27 revenue guidance of US$1.48 – 1.54bn which was consistent with our forecast of US$1.53bn but slightly below VA consensus of US$1.55bn. The company shifted to providing EBITDA guidance on an underlying basis and gave a range of US$725 – 780m which was consistent with VA consensus of US$761m. This implied guidance for the underlying EBITDA margin of 49-51%.

In response, Bell Potter has made both upgrades and downgrades to its near-term estimates. The broker explains:

We have downgraded our FY27 and FY28 revenue forecasts by c.2% and now forecast FY27 revenue of US$1,507m which is around the middle of the guidance range. We have, however, upgraded our FY27 underlying EBITDA forecast by 3% but left our FY28 forecast close to unchanged. We now forecast FY27 underlying EBITDA of US$745m which is more towards the lower end of the guidance range. That is, we forecast a margin of 49.4% which is towards the low end of the range.

Should you buy WiseTech shares?

According to the note, Bell Potter has retained its buy rating on WiseTech shares with a trimmed price target of $65.00 (from $71.75).

Based on its current share price, this implies potential upside of almost 60% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

The post Why cheap WiseTech shares could rise almost 60% appeared first on The Motley Fool Australia.

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• 3 ASX 200 dividend shares that just hiked their payouts
• Why I’d buy the dip on DroneShield and WiseTech shares
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• WiseTech Global share price: FY26 earnings soar 79% on e2open acquisition
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 9,127.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

It looks set to be a soft session for Australian investors on Thursday following a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points lower this morning. In the United States, the Dow Jones fell 0.2%, the S&P 500 was a fraction lower, and the Nasdaq edged 0.1% lower.

ASX 200 result releases

Earnings season continues on Thursday with another group of ASX 200 shares due to release their results. This includes Bunnings owner Wesfarmers Ltd (ASX: WES), airline operator Qantas Airways Ltd (ASX: QAN), mining and mining services company Mineral Resources Ltd (ASX: MIN), diversified miner South32 Ltd (ASX: S32), and fund manager Magellan Financial Group Ltd (ASX: MFG).

Oil prices fall

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$81.89 a barrel and the Brent crude oil price is down 1.3% to US$87.45 a barrel. This was driven by positive developments in the Middle East.

Buy DroneShield shares

DroneShield Ltd (ASX: DRO) shares are in the buy zone according to analysts at Bell Potter. This morning, in response to the counter-drone technology company’s half-year results, the broker has retained its buy rating with a trimmed price target of $2.40. It said: “We expect RFRecon and new high-moat next gen products to drive continued contract wins, particularly from Europe where DRO has a leading presence in the CUAS EW vertical. Top end of CY26 revenue guidance looks achievable. Retain Buy.”

Gold price falls

It could be a poor session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,647.8 an ounce. Traders were selling the precious metal following the release of US inflation data.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Down 48% in 2026: Have DroneShield shares finally bottomed out?
• Here are the top 10 ASX 200 shares today
• Higher for longer? Why the ASX 200 just turned negative
• South32, Woolworths, BHP shares reach 52-week high: Buy, sell or hold?
• Inflation falls again, but could the RBA still raise interest rates?

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.