Dividends can be one of the most important considerations for Australian investors, especially those who are looking to live off the income their shares provide.
Well-established blue-chip companies like the banks are less likely to see substantial share price growth over many years, so dividends are often seen as the key reason to invest in them.
Unfortunately there's no one magic stock that is 'best' for everyone. Instead, you should look into your own portfolio, your individual needs and your investment strategy to decide what stock is right for you. Further still, nobody can say for certain which direction a share will go as past performance is no guarantee of future results. So keep in mind these are stock ideas only and should not be taken as personal financial advice.
Please note the below are not share trading recommendations. They are simply investing ideas. Before trading you should do your own research to determine if any of the below are right for you.
All below data is as of 9 April 2025.
Yancoal Australia Ltd is a coal-mining company that manages and operates mines in NSW, Queensland and Western Australia. It currently has a market capitalisation of AUD$8.5 billion. It paid out one dividend in 2024 at 32.5c per share (fully-franked).
A telecom and digital services company, Spark New Zealand is one of the largest companies on the New Zealand Exchange (NZX) and is also listed on the ASX. It currently has a P/E ratio of 5.50, and offers a 7.37% dividend to investors. It paid out 2 unfranked dividends in 2024 at 12.83c per share.
IGO Ltd is a mineral exploration company with a focus on enabling clean energy. It has a market capitalisation of $3.61 billion.
The company offers investors a dividend yield of 10.90% and a P/E ratio of 2,073, with 2 fully-franked dividend payments in 2024 at 11c and 26c per share.A telecom and digital services company, Spark New Zealand is one of the largest companies on the New Zealand Exchange (NZX) and is also listed on the ASX. It currently has a P/E ratio of 16.44, and offers a 9.76% dividend to investors. It paid out 2 unfranked dividends in 2024 at 12.83c per share.
Wam Capital is a listed Investment Company (LIC) managed by Wilson Asset Management. It primarily focuses on undervalued growth stocks listed on the ASX. Total shareholder return in the 6 months to 31 December 2024, including franked dividends, was 16.6%. It paid 2 partially franked (60%) dividends in 2024 of 7.75 cents per share.
New Hope Corporation is an Australian diversified energy company with significant interests in coal mining, exploration, and development. It has a market cap of $4.19 billion.
With a dividend yield of 8.85%, it offers investors a competitive return, indicative of its steady financial performance. The earnings per share stand at $0.24, reflecting the company's ability to generate consistent profits and maintain a healthy dividend payout for its shareholders. It has paid out 2 fully-franked dividends in 2024, at 17c and 22c per share.Growthpoint Properties Australia is a real estate investment trust listed on the ASX with a market capitalisation of AUD$1.82 billion. It has maintained a dividend yield of approximately 8.65%, with a 9.65c dividend per share paid out in 2024, with a franking percentage of 0.63%.
Metrics Master Income Trust Unit offers exposure to Australian corporate loans with the aim of providing investors with stable income through interest payments. It paid out 2 unfranked dividends in 2024, each at 1.35c per share. with a third dividend of 1.32c in November.
Atlas Alteria is a global transport operator which specialises in toll roads. It currently has projects in France, Germany and the US and a market capitalisation of $6.89 billion. One of the company's notable projects is the Chicago Skyway, a 12.5km elevated toll road in which the company owns a 66.67% interest.
Overall, Atlas Arteria offers investors an opportunity to invest in a stable and diversified toll road portfolio, with a history of strong financial performance and a commitment to delivering returns through dividends. It has given investors 2 unfranked dividends in 2024, at 20c per share.Woodside Energy Group is Australia's largest independent oil and gas company, with a market cap of $1.79 billion. The company's dividend yield is significant at 10.84% as of February 2025, with 2 fully-franked dividend payments in 2024 and a net profit margin of 72.67%.
We filtered Australian stocks that had been public for at least 5 years with market caps of over $1 billion and then selected the 10 stocks with the highest yield.
Debt-to-equity (D/E) ratio: Compares a company's level of debt to its amount of shareholder equity. Generally speaking, the higher the ratio, the more leveraged a company is, although this ratio will differ broadly across sectors.
Price-earnings (P/E) ratio: The relative value of a company's stock price to its recent profit results, i.e. the price investors are paying for every dollar of profit the company makes. A high P/E ratio might indicate investors expect growth to occur in the future and are willing to pay more for it, or it can also indicate the stock is overpriced.
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Dividend investors will typically look for the following attributes when selecting their ASX dividen stocks:
"When searching for dividend stocks, investors should be looking for companies with consistent, reliable cash flows from a product or service with a clear competitive advantage. Ultimately it is profit from these cash flows that will lead to dividends,"
He also cautioned investors of the risks of dividend traps, highlighting the need to analyse 2 key metrics before purchasing dividend shares.
"The first is to look at the company's historical dividends to make sure they are consistent. The second – look at the company's dividend payout ratio and ensure it didn't suddenly increase based on a one-off event,
The average dividend yield for an ASX 200 company is about 4%. If a stock is yielding say 15% then it is unlikely this can be maintained and that stock needs further analysis to avoid disappointment."
To buy dividend stocks, you'll need to sign up to an online broker. You can use the table below to compare online brokers (also known as share trading platforms) available in Australia.
We currently don't have that product, but here are others to consider:
How we picked theseImportant: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| I don't earn any dividends | 45.63% | 38.64% | 41.1% | 39.09% | 35.71% |
| Less than $500 | 12.62% | 10.61% | 8.22% | 14.21% | 15.22% |
| No idea | 11.65% | 7.95% | 20.55% | 11.68% | 12.73% |
| Between $500 - $2000 | 10.68% | 12.5% | 6.85% | 12.18% | 7.76% |
| I reinvest my dividends | 5.83% | 10.61% | 8.22% | 7.11% | 10.87% |
| $10001-$20000 | 3.88% | 4.17% | 1.37% | 2.03% | 2.8% |
| Over $20000 | 3.88% | 4.17% | 1.37% | 3.05% | 4.66% |
| $2001 - $5000 | 2.91% | 4.92% | 10.96% | 5.58% | 8.7% |
| $5001 - $10000 | 2.91% | 6.44% | 1.37% | 5.08% | 1.55% |
Image source: Getty
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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