With interest rates expected to fall next year, it seems clear that we are now seeing a peak in term deposits for the current cycle.

In light of this, investors might be better off turning to the stock market for their income needs.

But which ASX dividend stocks could be good alternatives to term deposits? Let’s look at three that analysts rate as Buys:

Endeavor Group Ltd (ASX: EDV)

Endeavor Group could be an ASX dividend stock to buy instead of term deposits. It is a leader in the Australian alcohol retail market through its store brands Dan Murphy’s and BWS. It also owns the ALH Hotels business, which has more than 350 approved properties across the country.

Goldman Sachs likes Endeavor because of its market leadership and the defensive nature of the alcohol retail market.

He expects this to support fully francized dividends of 20 cents per share in fiscal 2025, then 22 cents per share in fiscal 2026. Based on current stock price Endeavor of $4.29, this will mean dividend yields 4.7% and 5.1% respectively.

Goldman also sees plenty of upside potential for its shares with its Buy rating and $5.50 price target.

Rural Funds Group (ASX: RFF)

Another ASX dividend stock to consider buying is Rural Funds.

It is a real estate company that has a portfolio of assets across a number of agricultural sectors. This includes almond and macadamia orchards, premium vineyards, water rights, crop and livestock farms, all of which are leased to major industry players under long-term contracts .

Bell Potter rates its stock as a Buy and expects very attractive dividend yields in the near term. It forecasts dividends per share of 11.7 cents for fiscal 2025, then 12.2 cents for fiscal 2026. Based on the current Rural Funds stock price of $1.86, this will mean returns of 6.3% and 6.6%, respectively.

The broker has a Buy rating and a $2.50 price target on its shares.

Telstra Group Ltd (ASX:TLS)

Finally, telecommunications giant Telstra could be a great alternative to term deposits for income investors.

It is also considered an ASX dividend stock to buy by analysts at Goldman Sachs. They believe the company is well-positioned to generate low-risk earnings and dividend growth in the years to come.

Regarding the latter, Goldman forecasts fully francized dividends of 19 cents per share for the 2025 financial year, then 20 cents per share for the 2026 financial year. Based on the current Telstra share price of 3, $89 represents dividend yields of 4.9% and 5.15%. , respectively.

The broker currently has a Buy rating and a $4.35 price target on its shares.