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Buy these ASX dividend shares to beat falling interest rates

The Motley Fool·06/02/2025 00:04:27
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With the Reserve Bank of Australia (RBA) tipped to make a couple of more cuts to the cash rate this year, income investors are likely to have to battle with low interest rates for the foreseeable future.

But don't worry because the Australian share market is here to save the day!

With countless ASX dividend shares offering yields that smash savings accounts and term deposits, income investors are spoilt for choice.

But which shares would be top picks this month? Let's now take a look at three that analysts think could be worth considering in June. They are as follows:

Endeavour Group Ltd (ASX: EDV)

The first ASX dividend share that could be a buy according to analysts is Endeavour Group. It is the leader in the Australian alcohol retail market through its Dan Murphy's and BWS brands.

Morgan Stanley currently has an overweight rating and $5.30 price target on its shares.

As for income, it is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 21 cents per share in FY 2026. Based on the current Endeavour share price of $4.07, this will mean dividend yields of 4.7% and 5.2%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy is HomeCo Daily Needs REIT.

It is a real estate investment trust with a mandate to invest in convenience-based assets across the target sub-sectors of neighbourhood retail, large format retail and health & services.

Morgans is bullish and has an add rating and $1.33 price target on its shares.

In respect to dividends, it is expecting HomeCo Daily Needs REIT to pay out 8.6 cents per share in both FY 2025 and FY 2026. Based on its current share price of $1.28, this would mean generous dividend yields of 6.7%.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, Treasury Wine could be an ASX dividend share to buy according to analysts.

It is the wine company behind the popular Penfolds brand, among countless other names.

The team at Goldman Sachs is positive on the company's outlook after a tough period. It has a buy rating and $12.90 price target on its shares.

As for income, the broker is forecasting partially franked dividends of 42 cents in FY 2025 and then 49 cents in FY 2026. Based on its current share price of $8.44, this would mean dividend yields of 5% and 5.8%, respectively.

The post Buy these ASX dividend shares to beat falling interest rates appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Treasury Wine Estates. 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 recommended HomeCo Daily Needs REIT and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025