With interest rate cuts likely coming in the near future, term deposits are starting to look less attractive for income investors.
But don't worry because there are plenty of ASX dividend shares out there that offer very attractive dividend yields.
But which ones could be buys right now? Let's take a look at a couple that analysts are positive on. They are as follows:
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HomeCo Daily Needs REIT (ASX: HDN)
HomeCo Daily Needs could be an ASX dividend share to buy. It is a property company with a focus on neighbourhood retail and large format retail assets. Its largest tenants are among the biggest names in the Australian retail sector. This includes Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW).
The team at Morgans is positive on the company and has an add rating and $1.36 price target on its shares. The broker believes HomeCo Daily Needs REIT is well-positioned for long term growth due to favourable trends and its development pipeline. It said:
The portfolio has resilient cashflows and continues to be a beneficiary of accelerating click & collect trends. +80% of tenants are national and ~75% of tenants offer click & collect reinforcing the importance of assets being able to support 'last mile logistics'. Sites are also in strategic locations with strong population growth (+80% metro). HDN offers an attractive distribution yield and the development pipeline provides growth opportunities.
As for income, the broker is forecasting dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.7% and 6.9%, respectively.
Regal Partners Ltd (ASX: RPL)
Over at Bell Potter, its analysts think that this alternative investment manager could be an ASX dividend share to buy this week.
It is bullish on Regal Partners and has a buy rating and $4.85 price target on its shares. The broker likes the company due to its strong investment performance and attractive valuation. It said:
In recent years, Regal has expanded rapidly through strong investment performance, net flows into its funds, launches of new funds, and the acquisition or merger with VGI Partners, PM Capital and Taurus, which have expanded funds under management from $1.1bn in 2017, to over $12.1bn (March 2025). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. In the last six months, and following the recent acquisition of PM Capital and Taurus (50%), the firm has shown an acceleration of inflows, strong investment performance (which will give rise to performance fees) and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.
In respect to dividend yields, Bell Potter is expecting fully franked dividends per share of 16.3 cents in FY 2025 and 18.1 cents in FY 2026. Based on its current share price of $3.94, this represents dividend yields of 4.1% and 4.6%, respectively.
