Buy these ASX dividend shares to beat term deposits

MotleyFool
03 Jun

Do you have room in your income portfolio for some new additions? If you do, then it could be worth checking out the ASX dividend shares listed in this article.

They have been rated as buys by analysts and tipped to provide investors with attractive dividend yields that are superior to what is on offer with term deposits right now. Here's what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

Analysts are tipping Centuria Industrial REIT as an ASX dividend share to buy. It is a pure-play industrial property trust that owns a high-quality portfolio of warehouses, logistics hubs, and distribution centres across Australia.

Bell Potter is a fan of the company. Its analysts think that "CIP presents a strong risk-adjusted opportunity where other asset classes have question marks. Strong fundamentals and a good bal sheet should allow CIP to grow as it captures existing portfolio value in time."

The broker believes this positions the company to pay dividends per share of 16.3 cents in FY 2025 and then 16.8 cents in FY 2026. Based on its current share price of $3.12, this equates to dividend yields of 5.2% and 5.4%, respectively.

It has a buy rating and $3.35 price target on its shares.

Regal Partners Ltd (ASX: RPL)

Bell Potter also thinks that Regal Partners could be an ASX dividend share to buy.

It is a specialist alternative investment manager with approximately $16.5 billion in funds under management.

The broker believes that Regal Partners is well-placed to pay fully franked dividends of 9.5 cents per share in FY 2025 and then 17.3 cents in FY 2026. At the current share price of $2.28, this equates to dividend yields of 4.2% and 7.5%, respectively.

It currently has a buy rating and $3.35 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, a third ASX dividend share that could be a buy is Universal Store.

It is a youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Macquarie rates the company highly. It recently highlighted its "strong sales growth in 1H25, continuing into 2H25, with GM% expansion YoY and private label continuing to increase. UNI continues to win market share, with ongoing store roll-out supporting network sales growth."

This is expected to support the payment of fully franked dividends of 33.8 cents in FY 2025 and then 39.5 cents in FY 2026. Based on its current share price of $7.60, this would mean dividend yields of 4.5% and 5.2%, respectively.

Macquarie has an outperform rating and $9.80 price target on its shares.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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