Beat falling interest rates with these ASX dividend stocks

Analysts think income investors should be snapping up these shares this week.

| More on:
A hand moves a building block from green arrow to red, indicating negative interest rates

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

Last month, the Reserve Bank of Australia (RBA) cut interest rates for the first time in years.

If the market is to be believed, this could be the first of a series of cuts by the central bank.

While this is good news for borrowers, it isn't for savers or income seekers. But don't worry if you're the latter because the share market is here to save the day.

That's because there are a large number of ASX dividend stocks trading on the local bourse that offer very attractive dividend yields. Three that analysts rate as buys are listed below:

Endeavour Group Ltd (ASX: EDV)

The team at Goldman Sachs thinks that Endeavour Group could be a top ASX dividend stock to buy right now.

It is the leader in Australia's alcohol retail market, operating popular store brands Dan Murphy's and BWS, along with the ALH Hotels business, which manages over 350 licensed venues nationwide.

In respect to dividends, the broker is forecasting fully franked dividends of 19 cents per share in FY 2025 and 22 cents per share in FY 2026. Based on its current share price of $4.26, this equates to dividend yields of 4.5% and 5.15%, respectively.

Goldman has a buy rating and $5.10 price target on its shares.

Regal Partners Ltd (ASX: RPL)

Over at Bell Potter, its analysts think that Regal Partners could be an ASX dividend stock to buy. It is one of Australia's leading alternative investment management companies.

Bell Potter believes the company is well-placed to reward investors with some generous dividends in the near term. It is forecasting dividends of 18.3 cents per share in FY 2025 and then 22 cents in FY 2026. At the current share price of $3.16, this equates to dividend yields of 5.8% and 7%, respectively.

The broker currently has a buy rating and $5.00 price target on its shares.

Rural Funds Group (ASX: RFF)

Finally, Rural Funds could be a third ASX dividend stock to buy to beat falling interest rates.

It is an agricultural-focused property company with a collection of high-quality and in-demand assets. This includes almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms.

Bell Potter is also bullish on this name and expects equally generous dividend yields. It is forecasting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. Based on the current Rural Funds share price of $1.84, this will mean yields of 6.35% and 6.6%, respectively.

The broker currently has a buy rating and $2.50 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Rural Funds 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

A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.
Retirement

3 ASX dividend shares paying more than the pension in retirement

How much money would you need to have invested to receive more in ASX dividends than the pension?

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

Here's why I own these 3 ASX dividend shares for passive income

These companies pay me handsomely to own them.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Dividend Investing

With a yield of 6.9%, how much upside does Macquarie tip for APA Group shares?

Let's see what the broker is saying about this high-yield dividend stock.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Buy Telstra and this top ASX dividend stock

Brokers have given the thumbs up to these income options this week.

Read more »

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years
Dividend Investing

Why I think these 2 ASX dividend shares offer great buying right now

These stocks offer potential for major dividend income.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Buy these excellent ASX dividend stocks for a big income boost

Brokers think these stocks could be top picks for income investors.

Read more »

A smartly-dressed businesswoman walks outside while making a trade on her mobile phone.
Dividend Investing

Here's the Telstra dividend forecast through to 2028

Let's see where the telco giant's dividend could be heading.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

My ASX share portfolio's yield is 1.8%. Here's why I'm ok with that

A small dividend yield is not a bad thing.

Read more »