While the yields on offer from term deposits have improved meaningfully over the last 12 months as rates rise, they still pale in comparison to what is potentially on offer from ASX dividend shares.
This is particularly the case in the mining sector, with a number of ASX 200 mining shares forecast to provide investors with generous 5%+ yields.
Which ASX 200 mining shares beat term deposits?
With commodity prices booming, there are a number of ASX 200 mining shares that analysts are expecting big yields from.
The first is Australia's largest miner, BHP Group Ltd (ASX: BHP). A recent note out of Macquarie reveals that its analysts are forecasting a fully franked dividend of approximately $3.00 per share in FY 2023. Based on the current BHP share price, this will mean a yield of 6% for investors. Macquarie also has an outperform rating and $52.00 price target on BHP's shares.
Another ASX 200 mining share tipped to provide investors with a big yield is Mineral Resources Ltd (ASX: MIN). Once again, it is Macquarie that is expecting a big yield from this miner. It is forecasting a fully franked $5.11 per share dividend in FY 2023, which equates to a 5.3% yield. The broker also has an outperform rating and $127.00 price target on Mineral Resources' shares.
Rio Tinto Ltd (ASX: RIO) is another ASX 200 mining share that could provide a yield that beats term deposits. Goldman Sachs, which has a buy rating and $134.40 price target on its shares, is expecting a US$4.40 (A$6.25) per share fully franked dividend in FY 2023. Based on the current Rio Tinto share price, this will mean a yield of 5%.
Finally, South32 Ltd (ASX: S32) is an ASX 200 mining share for income investors to consider. Citi currently has a buy rating and $5.00 price target on its shares. As for dividends, the broker is forecasting a fully franked 27 cents per share dividend in FY 2023. This represents a 5.55% dividend yield at current levels.
