While the yields on term deposits have improved materially over the last 12 months, they still pale in comparison to the dividend yields you can find on the Australian share market.
In addition, there's no prospect of capital gains from term deposits, whereas the ASX dividend shares listed below have been tipped to rise strongly over the next 12 months.
Combined with their big yields, this arguably makes them a great alternative for income investors right now. Here's what analysts are saying about them:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend share to look at is Accent Group. It is the company behind a large number of footwear-focused retail store brands. This includes The Athlete's Foot, Stylerunner, HYPEDC, and Sneaker Lab.
Bell Potter currently has a buy rating and a $2.50 price target on its shares. This implies a potential upside of approximately 40% for investors.
In addition, it is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. This represents dividend yields of 6.7% and 7.9%, respectively.
Stockland Corporation Ltd (ASX: SGP)
Another ASX dividend share that could be a buy is Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager.
Citi is a fan due to its "strong medium-term growth outlook and cheap valuation." The broker currently has a buy rating and a $5 price target for its shares, which suggests a 23% upside for investors.
As for income, Citi is forecasting dividends per share of 27 cents in FY 2024 and FY 2025. Based on the current Stockland share price of $4.07, this will mean yields of 6.6% in both years.
Universal Store Holdings Ltd (ASX: UNI)
Finally, the team at Morgans says that youth fashion retailer Universal Store could be an ASX dividend share to buy. Its analysts believe "UNI's attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."
The broker currently has an add rating and a $4.25 price target on its shares. This implies a potential upside of 24% for investors.
In respect to dividends, Morgans is forecasting fully franked dividends of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the latest Universal Store share price of $3.42, this equates to yields of 7.6% and 8.5%, respectively.
