With term deposit rates likely to fall next year if the RBA cuts interest rates, income investors may once again be at a loose end.
But don't worry because there are plenty of ASX dividend stocks that could be good alternatives to term deposits.
For example, the three buy-rated shares listed below are highly rated for a reason. Here's what you need to know about them:
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APA Group (ASX: APA)
APA Group could be a great alternative to term deposits. Particularly given how the energy infrastructure company increases its dividend each year like clockwork.
In fact, the company is on track to lift its dividend for a whopping 20 years in a row.
Macquarie expects this to happen. It is forecasting dividend increases to 57 cents per share in FY 2025 and then 57.5 cents per share in FY 2026. Based on the current APA Group share price of $6.82, this equates to 8.35% and 8.4% dividend yields, respectively.
The broker currently has an outperform rating and $8.23 price target on its shares.
Coles Group Ltd (ASX: COL)
Another ASX dividend stock that could be a top alternative is Coles. It is of course one of Australia's leading retailers with approximately 1,800 retail outlets nationally. This comprises around 850 supermarkets and 950 liquor stores.
Bell Potter is feeling very positive about the company's outlook. Last week, in response to its quarterly update, the broker said that it "continue[s] to see COL as providing an attractive earnings growth profile through to FY27e on an underlying basis."
As for dividends, its analysts are forecasting fully franked dividends of 68 cents per share in FY 2025 and then 78 cents per share in FY 2026. Based on the current Coles share price of $17.61, this implies yields of approximately 3.9% and 4.4%, respectively.
Bell Potter has a buy rating and $20.50 price target on the company's shares.
IPH Ltd (ASX: IPH)
Finally, IPH could be another ASX dividend stock to buy. It is an intellectual property (IP) services company with operations across the world.
Goldman Sachs is very positive on the company and believes that it "is well-placed to deliver consistent and defensive earnings with modest overall organic growth."
After growing its dividend for the past 10 years, Goldman expects this run to continue. It is forecasting fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $5.40 this represents yields of 6.7% and 7.2%, respectively.
Goldman currently has a buy rating and $7.50 price target on its shares.
