Buy these ASX dividend shares instead of term deposits in March

With interest rates on the way down, term deposit rates are starting to lose their appeal. If you're looking for higher yields and the potential for capital growth, ASX dividend shares could be a smarter choice for your investment dollars in March and beyond.

But which shares would be good for income investors? Let's take a look at three that analysts are tipping as buys. Here's what they are saying about them:

Elders Ltd (ASX: ELD)

Elders is a leading agribusiness company that provides expert advice and services to Australian farmers across a wide range of agricultural products.

Bell Potter believes that its shares are attractively price. It highlights that Elders is trading at around 7.4 times its forecast FY 2025 EBITDA, which is a discount to its long-term average multiple of 8.5 times.

In addition, some attractive dividend yields are expected in the near term. The broker is forecasting fully franked dividends of 41 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on its current share price of $6.92, this means dividend yields of 5.8% in 2025 and 6.2% in 2026. These are both comfortably higher than most term deposit rates right now.

Bell Potter has a buy rating and $9.45 price target on its shares.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share that could be a buy is Dicker Data. It is a technology distributor that supplies software, hardware, cloud, and cybersecurity solutions across Australia.

As the tech sector continues to expand, Dicker Data is well-positioned to benefit from rising demand. UBS believes this will be the case, particularly given how it expects demand from small and medium-sized enterprises (SMEs) to recover.

This is expected to underpin fully franked dividends of 49 cents per share in FY 2025 and then 53 cents in FY 2026. Based on its current share price of $8.50, this equates to dividend yields of 5.8% in 2025 and 6.2%, respectively.

UBS has a buy rating and $10.20 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Finally, Telstra could be an ASX dividend share to buy ahead of term deposits. It is Australia's largest telecommunications provider, serving 22.5 million mobile customers and 3.4 million broadband customers. Its dominant market position gives it a strong competitive edge and a reliable stream of cash flow, making it a top choice for income investors.

Goldman Sachs expects fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on its current share price of $4.09, this equates to dividend yields of 4.65% and 4.9%, respectively.

The broker has a buy rating and $4.50 price target on its shares.

The post Buy these ASX dividend shares instead of term deposits in March appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Dicker Data and Telstra Group. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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