With term deposit rates expected to ease further this year, now could be a good time for income investors to look at some ASX dividend shares.
If you're looking to build a passive income stream, here are two ASX dividend shares that brokers currently rate as buys — and they're both offering very attractive dividend yields. Here's what is being recommended:
When it comes to reliability, few ASX dividend shares can match APA Group.
This energy infrastructure giant owns a sprawling portfolio of gas pipelines, electricity grids, solar farms and wind assets across Australia. It is the kind of business that quietly goes about its work — transporting energy, signing long-term contracts, and paying out dividends like clockwork.
In fact, APA is on track to increase its dividend for the 20th consecutive year — a feat that few can claim. That kind of consistency speaks volumes in an unpredictable market.
Analysts at Macquarie have an outperform rating on its shares and remain confident that the dividend increases will continue. They are forecasting dividends of 57 cents per share in FY 2025 and then 58 cents per share in FY 2026. Based on the current share price of $8.18, that equates to fully franked dividend yields of 7% and 7.1%, respectively.
If you're looking for something a little different in your income portfolio, Rural Funds Group could be worth a closer look.
This ASX dividend share is an agricultural property trust that owns a diverse portfolio of premium farming assets — from almond and macadamia orchards to vineyards, cropping land and water entitlements.
While its share price has been under pressure, the team at Bell Potter believes the market is underestimating its value and sees significant upside over the next 12 months.
For example, the broker currently has a buy rating and $2.45 price target on its shares. Based on its current share price of $1.73, this implies potential upside of over 40% for investors.
And, as mentioned above, some generous dividend yields are expected in the near term. The broker is forecasting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. At its current share price, this would mean dividend yields of 6.75% and 7%, respectively.
Overall, it could be a good option for income-focused investors hunting for value in unloved corners of the market.
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