Forget term deposits and buy these high-yield ASX dividend shares instead: experts

Term deposits yields are improving but can't compare to these dividend shares.

| More on:
A woman holds a lightbulb in one hand and a wad of cash in the other

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While rates are rising fast, savings accounts and term deposits still can't compete with the yields on offer with ASX dividend shares.

For example, Commonwealth Bank of Australia (ASX: CBA) is currently offering a respectable 3.95% per annum on 12-month term deposits, but the shares listed below could offer significantly better yields.

Here's what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors to look at is footwear retailer Accent.

It has been tipped as a buy by analysts at Bell Potter. The broker has put a buy rating and $2.40 price target on its shares.

Its analysts were pleased with the company's performance during the first half and its strong start to the second half. It also appears confident this positive form can continue thanks to its exposure to younger consumers that are less impacted by rising rates.

Bell Potter is expecting this to lead to fully franked dividends of 15.5 cents per share in FY 2023 and 12.2 cents per share in FY 2024. Based on the current Accent share price of $2.24, this would mean yields of 6.9% and 5.4%, respectively, over the next couple of years.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a good option right now for income investors is this banking giant.

That's the view of analysts at Goldman Sachs, that remain very positive on the banking giant. In fact, the broker highlights that the company's recent first-quarter update indicates that its cash earnings are "run-rating 3% above what was implied by our previous 1H23E forecasts."

Outside this, Goldman likes NAB due to its belief that volume momentum will favour commercial volumes over housing volumes over the next 12 months. It points out that "NAB provides the best exposure to this thematic."

In light of this, the broker currently has a buy rating and $35.42 price target on its shares.

As for dividends, the broker is forecasting a $1.73 per share dividend in FY 2023 and then a $1.76 per share dividend in FY 2024. Based on the current NAB share price of $27.04, this will mean fully franked yields of 6.4% and 6.5%, respectively.

Should you invest $1,000 in Igo Ltd right now?

Before you buy Igo Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Igo Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

Why I'd buy ASX dividend shares now before it's too late

This could be the right time to look at ASX dividend stocks.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Dividend Investing

Beat low interest rates with these ASX dividend shares

As expected, on Tuesday the Reserve Bank of Australia elected to cut the cash rate once again. And with interest…

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Dividends from ASX 200 bank shares 'looking very stretched': expert

The banks have always been a favourite choice among ASX dividend investors. But the outlook ain't great.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Dividend Investing

The best ASX dividend stocks to buy right now

Brokers think these stocks are top picks for income investors right now.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Here are 2 ASX income stocks with yields above 7%

These businesses offer excellent dividends for income-seekers.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

5 quality ASX dividend shares to buy now

Brokers have named these shares as buys. Let's see what is being recommended.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Dividend Investing

These 3 ASX dividend stocks are my favourite picks for franked passive income right now

With interest rates set to fall, these stocks are looking good to me.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »