Why ASX Dividend Shares May Outshine Term Deposits
Term deposits have seen a resurgence of interest following rate hikes, yet ASX dividend shares may offer an attractive alternative with potential for higher yields and capital gains.
ASX Shares to Watch
Investing in solid dividend-paying shares can not only deliver substantial income but also capital appreciation.
APA Group (ASX: APA)
Energy infrastructure stalwart APA Group represents a compelling blend of yield and growth, with a notable track record of 20 consecutive years of dividend growth. Analysts from Macquarie maintain an optimistic view on APA Group, expecting hearty dividends alongside an approximately 18% increase in share price.
Accent Group Ltd (ASX: AX1)
With the continuation of casual footwear trends, Accent Group Ltd is seen as a higher-risk yet potentially high-reward investment by Bell Potter analysts. They anticipate a yield hike to 7.5% in FY 2025 and possible 30% share value increase.
Top Points to Note:
- APA Group forecasted dividends suggest around 7% yield.
- Accent Group’s projected yield could reach 7.5% by FY 2025.
- Both companies show strong potential for share price appreciation.
Insights/Analysis:
While term deposits offer guaranteed returns, a well-chosen dividend stock can provide a dual benefit of income and growth. The market’s nature does entail risk, but with thorough analysis and strategic choices, the rewards can be substantial.
Concluding Thought:
In the ever-evolving landscape of investment opportunities, ASX dividend shares could serve as a robust alternative to traditional term deposits, marrying income with potential for capital gains.