Forget term deposits and buy these ASX dividend stocks

With interest rates likely to fall later this year, it seems that we have already seen peak rates for term deposits.

In light of this, income investors may want to consider turning to ASX dividend stocks for better yields.

But which dividend stocks could be buys? Let's look at three that analysts are tipping as buys:

Harvey Norman Holdings Limited (ASX: HVN)

The first ASX dividend stock that could be a buy for income investors is retail giant Harvey Norman.

That's the view of analysts at Bell Potter, which believe it stands to benefit greatly from an artificial intelligence driven major upgrade/replacement cycle of devices purchased during the COVID-19 pandemic.

The broker expects this to support the payment of fully franked dividends of 25.9 cents per share in FY 2025 and then 28.5 cents per share in FY 2026. Based on the current Harvey Norman share price of $4.72, this equates to attractive 5.5% and 6% dividend yields, respectively.

Bell Potter also sees plenty of value in its shares. It has a buy rating and $5.80 price target on its shares.

Smartgroup Corporation Ltd (ASX: SIQ)

Another ASX dividend stock that analysts are tipping as a buy is Smartgroup. It is a leading provider of employee benefits, end-to-end fleet management, and software solutions.

The broker thinks it would be a great option due to its defensive business, favourable tailwinds, and attractive valuation.

In respect to dividends, the broker is forecasting fully franked dividends of 53.3 cents in FY 2024 and then 59.7 cents in FY 2025. Based on its current share price of $7.87, this means big potential dividend yields of 6.8% and 7.6%, respectively.

Bell Potter currently has a buy rating and $10.00 price target on its shares.

Telstra Group Ltd (ASX: TLS)

A third ASX dividend stock that could be a good alternative to term deposits is telco giant Telstra.

That's the view of analysts at Goldman Sachs, which believes that "the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."

As for income, Goldman is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $4.07, this represents dividend yields of 4.7% and 4.9%, respectively.

The broker has a buy rating and $4.50 price target on its shares.