With inflation now under control and interest rates likely to be heading lower in the near future, term deposits are starting to lose some of their appeal.

In light of this, income investors may get better risk-adjusted returns from buying ASX dividend stocks. But which ones?

Here are two that analysts rate very highly:

IPH Ltd (ASX: IPH)

The first ASX dividend stock that could be a buy is IPH. It is a leading intellectual property (IP) services company operating across the globe through a number of brands. This includes AJ Park, Griffith Hack, Smart & Biggar, and Spruson & Ferguson.

Morgans thinks that its shares would be a good option for income investors. Particularly given their attractive valuation. The broker recently said:

IPH's valuation is undemanding (~10.8x FY25F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a re-rating.

As for dividends, the broker is forecasting fully franked payouts of 35 cents per share in FY 2025 and then 36 cents per share in FY 2026. Based on the current IPH share price of $4.57, this will mean dividend yields of 7.7% and 7.9%, respectively.

Morgans currently has an add rating and $6.30 price target on its shares.

Smartgroup Corporation Ltd (ASX: SIQ)

Another ASX dividend stock that could be better than a term deposit is Smartgroup.

It is a leading provider of employee benefits, end-to-end fleet management, and software solutions. At the last count, it had over 400,000 salary packages and 64,000 novated leases under management.

Bell Potter is a fan of the company and believes it would be a good pick in the current environment. It highlights its defensive business, favourable tailwinds, and attractive valuation as reasons for income investors to buy. The broker said:

SIQ looks well priced given a forward P/E of ~12x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill (exempts low or zero emission vehicles from Fringe Benefits Tax), an ROE of ~30% and a strong balance sheet.

In respect to income, the broker is forecasting fully franked dividends of 53.3 cents in FY 2024 and then 59.7 cents in FY 2025. Based on its current share price of $7.82, this would mean very large potential dividend yields of 6.8% and 7.6%, respectively.

Bell Potter currently has a buy rating and $10.00 price target on its shares.