Best Dividend Stocks ASX to Watch in 2026

Investors looking for the best dividend stocks ASX has to offer may consider companies across sectors such as energy infrastructure, banking, mining, telecommunications, insurance and retail. 

The following list covers 10 ASX-listed companies, including their reported annual dividend yields, business operations and selected financial results. The companies range from established businesses with diversified operations to companies with higher stated dividend yields.

However, a high dividend yield alone does not establish whether a stock is suitable for an income portfolio. Investors may also consider earnings, cash flow, financial strength, dividend franking and the sustainability of future distributions.

See our Top Picks of best ASX Performing stocks

Top 10 Best Dividend Stocks ASX

• APA Group (ASX: APA): Annual dividend yield of 5.27%; partially franked.

• Wesfarmers Limited (ASX: WES): Annual dividend yield of 3.39%; fully franked.

• Telstra Group Limited (ASX: TLS): Annual dividend yield of 4.54%; franking status not specified.

• National Australia Bank Limited (ASX: NAB): Annual dividend yield of 4.42%; fully franked.

• BHP Group Limited (ASX: BHP): Annual dividend yield of 3.87%; fully franked.

• McMillan Shakespeare Limited (ASX: MMS): Annual dividend yield of 7.17%; fully franked.

• JB Hi-Fi Limited (ASX: JBH): Annual dividend yield of 4.69%; fully franked.

• QBE Insurance Group (ASX: QBE): Annual dividend yield of 4.41%; partially franked.

• Amcor plc (ASX: AMC): Annual dividend yield of 4.97%; unfranked.

• Super Retail Group Limited (ASX: SUL): Annual dividend yield of 4.83%; fully franked.

Source: Company reports and supplied company data. Dividend yields are the figures provided for this article and may change with share prices and dividend announcements. The calculation dates and yield methodology should be confirmed before publication.

1. APA Group (ASX: APA)

APA Group is an energy infrastructure business that may interest investors researching the best dividend stocks ASX for income exposure. Its reported annual partially franked dividend yield is 5.27%, and the company has raised its FY27 distribution guidance to 59 cents per security.

Why APA Group is worth watching

APA's dividend profile is supported by essential energy infrastructure, including more than 15,000 kilometres of gas pipelines. Long-term contracts provide predictable revenue, with some revenue linked to inflation.

The company also reported the following FY26 results:

• Underlying EBITDA: Increased 8.3% to $2.183 billion.

• Free cash flow: Increased 3.2% to $1.118 billion.

• Distribution growth: Recorded its 22nd consecutive year of distribution growth.

These figures provide context for investors assessing APA's earnings, cash generation and distribution history.

2. Wesfarmers Limited (ASX: WES)

Wesfarmers operates a diversified portfolio of established businesses, including Bunnings, Kmart and Wesfarmers Health. This portfolio gives the company exposure to multiple business areas rather than relying on a single source of earnings.

Its reported annual fully franked dividend yield is 3.39%, which may interest investors seeking dividend income alongside exposure to an established Australian business group.

Why Wesfarmers is worth watching

Wesfarmers reported the following FY26 financial results:

• Underlying net profit after tax: Increased 8.3% to $2.874 billion.

• Free cash flow: Grew 15.8% to $3.992 billion.

• Ordinary dividend: Increased 7.8% to $2.22 per share, fully franked.

The combination of earnings growth, free cash flow and a higher ordinary dividend provides several indicators for investors evaluating Wesfarmers as a potential long-term dividend share.

3. Telstra Group Limited (ASX: TLS)

Telstra Group is a telecommunications company that distributes dividends semi-annually. Its reported current annual dividend yield is 4.54%.

Why Telstra is worth watching

Telstra's established telecommunications operations and high customer switching costs are relevant considerations when assessing its business position. The company's next phase of growth is expected to be more lucrative, while its AI-driven productivity initiatives are intended to improve efficiency.

For investors researching best long-term dividend stocks ASX, Telstra provides exposure to the telecommunications sector. Its dividend profile should be assessed alongside operating performance, investment requirements and the company's ability to sustain distributions.

4. National Australia Bank Limited (ASX: NAB)

National Australia Bank (NAB) has a reported annual fully franked dividend yield of 4.42%. As an established Australian bank, it may appeal to investors looking for income exposure to the banking sector.

Why NAB is worth watching

NAB earns recurring income from home loans, business lending and customer deposits. These activities provide a broad foundation for its banking operations and dividend payments.

In its third-quarter 2026 update, NAB reported:

• Cash earnings: $1.83 billion.

• Common Equity Tier 1 (CET1) capital ratio: 11.93%.

• Operating target for the CET1 ratio: 11.25%.

The reported capital ratio was above the bank's operating target, providing context for assessing its capital position and capacity to withstand financial pressures.

Investors considering NAB among the best dividend stocks Australia offers may also assess lending conditions, credit quality and changes in bank earnings.

Dig Deeper :- Best ASX Bank stocks

5. BHP Group Limited (ASX: BHP)

BHP Group is a globally diversified mining business with exposure to major commodities, including copper and iron ore, as well as a growing potash business. Its reported annual fully franked dividend yield is 3.87%.

Why BHP is worth watching

BHP's commodity exposure provides investors with access to several areas of the mining industry. Its portfolio includes major copper and iron ore operations, while potash adds another business area.

The company reported the following FY26 results:

• Underlying EBITDA: Increased 27% to US$32.9 billion.

• Net operating cash flow: Increased 17% to US$21.8 billion.

These results were supported by a disciplined capital allocation framework, according to the supplied company information.

For investors evaluating ASX best dividend stocks, BHP offers mining-sector exposure. However, its future earnings and distributions should also be assessed in the context of commodity prices, operating performance and capital expenditure.

Also Read | Best ASX Mining stocks

6. McMillan Shakespeare Limited (ASX: MMS)

McMillan Shakespeare Limited provides salary packaging, novated leasing, fleet management and plan management services. Its reported annual fully franked dividend yield is 7.17%, the highest among the 10 companies listed here.

Its market capitalisation was $1.28 billion at the time of writing.

Why McMillan Shakespeare is worth watching

Recurring revenue from its service offerings is an important feature of the company's business model. Together, these services account for 50% of statutory revenue.

McMillan Shakespeare reported the following FY26 results:

• Revenue: Increased 6.8% to $602.1 million.

• Underlying net profit after tax: Increased 13.8% to $107.9 million.

• Fully franked dividends: The company declared dividends of $1.32 per share.

The combination of revenue growth, higher underlying profit and a relatively high reported dividend yield may attract investors researching income-generating shares.

However, a high yield should not automatically be interpreted as a safer or more sustainable dividend. Investors may also examine earnings, cash generation and future distribution announcements.

7. JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi operates three established retail brands, providing exposure to electronics and home appliances across its customer base. Its reported annual fully franked dividend yield is 4.69%.

Why JB Hi-Fi is worth watching

The company's retail operations may appeal to investors looking for dividend income alongside exposure to the Australian consumer and retail sectors.

JB Hi-Fi reported the following FY26 results:

• Sales: Increased 4.8% to $11.06 billion.

• Net profit after tax: Increased 6% to $489.9 million.

• Annual ordinary dividend: Grew 22.5% to $3.37 per share.

• Net cash position: $206.5 million.

The reported sales and profit growth, increase in the ordinary dividend and net cash position provide useful indicators for assessing the company's financial performance.

Investors should also consider retail trading conditions, consumer demand and the potential effect of changes in household spending on future results.

8. QBE Insurance Group (ASX: QBE)

QBE Insurance Group has a reported annual partially franked dividend yield of 4.41%. Its operations span North America, international markets and Australia Pacific.

Why QBE is worth watching

QBE's diversified insurance operations include premiums from commercial insurance and reinsurance. Its geographic and business exposure provides a broad base for its insurance activities.

In the first half of 2026, QBE reported adjusted net profit after tax of US$1.033 billion. The result reflects the company's reported underwriting performance and risk management.

For investors considering QBE among the best dividend shares ASX offers, adjusted profitability is one relevant measure. Underwriting results, claims experience and risk management are also important when evaluating an insurer's capacity to maintain future dividend payments.

9. Amcor plc (ASX: AMC)

Amcor is a global packaging company serving the food, healthcare, beauty and personal care industries. It currently has a reported annual unfranked dividend yield of 4.97%.

Why Amcor is worth watching

Amcor supplies flexible and rigid packaging solutions used across consumer and healthcare markets. Demand for these products supports its business exposure to everyday packaging requirements.

The company operates in more than 40 countries and serves a range of industries, giving it geographic and product diversification.

Investors researching dividend stocks may consider Amcor's global operations and exposure to essential packaging markets. Its unfranked dividend status is also relevant when comparing its income profile with fully or partially franked Australian shares.

10. Super Retail Group Limited (ASX: SUL)

Super Retail Group has a reported annual fully franked dividend yield of 4.83%. The retailer operates four recognised brands serving the automotive, sporting and outdoor markets.

Why Super Retail Group is worth watching

The company's range of brands provides exposure to several consumer product categories. Its reported FY26 financial results included:

• Revenue: Increased 3.2% to $4.20 billion.

• Operating cash flow: $593.1 million.

• Cash conversion rate: 92%.

These results provide context for assessing the company's revenue performance and cash generation.

For investors considering Super Retail Group as one of the top dividend stocks ASX investors may research, cash flow and operating performance are relevant alongside the reported yield. Retail demand and trading conditions may also affect future earnings and dividend decisions.

Risks of Investing in ASX Dividend Stocks

Dividend-paying companies can provide an income stream, but dividends are not guaranteed. Before investing in any of the companies discussed above, investors should consider several risks.

1. Dividend yields can change

A dividend yield changes with the share price and the dividend used in its calculation. A higher yield does not necessarily mean a company is a better investment, particularly if its share price has fallen because of weaker business prospects.

2. Dividends can be reduced or suspended

Companies may reduce, defer or suspend distributions when earnings weaken, cash flow deteriorates or financial priorities change. A history of dividend growth does not guarantee future increases.

3. Different industries carry different risks

Banks, miners, retailers, telecommunications companies, insurers and infrastructure businesses operate under different economic and commercial conditions. For example, mining earnings may be affected by commodity prices, while retailers may be affected by consumer spending.

4. Franking status affects after-tax income

Fully franked, partially franked and unfranked dividends have different tax implications for eligible Australian investors. The value of franking credits depends on an investor's circumstances and applicable tax rules.

5. Business performance matters

Investors may assess earnings, free cash flow, capital requirements and balance-sheet strength alongside the headline yield. These measures can help provide context for evaluating the sustainability of distributions, although none guarantees future dividend payments.

How to Evaluate the Best Dividend Stocks ASX

Investors comparing the highest dividend stocks ASX has to offer may find it useful to assess companies using a consistent set of criteria.

Factors to Consider When Evaluating Dividend Stocks

1. Dividend yield: The annual dividend relative to the share price, including the period and calculation method.

2. Dividend history: Previous distributions and any changes in dividend policy.

3. Earnings: Profitability and the factors driving business performance.

4. Cash flow: Whether operating cash generation supports business needs and dividend distributions.

5. Financial strength: Debt, liquidity and capital requirements.

6. Franking status: Whether dividends are fully franked, partially franked or unfranked.

7. Industry exposure: The economic and commercial risks affecting the company's sector.

8. Valuation: The share price relative to relevant earnings, cash flow and other business measures.

No single factor determines whether a stock is suitable. A company with a lower yield may have different growth prospects or financial characteristics from one with a higher yield.

Are ASX Dividend Stocks Suitable for Long-Term Investors?

Dividend stocks may be relevant to investors seeking a combination of income and potential long-term capital growth. However, the suitability of an individual company depends on its financial performance, valuation, business risks and the investor's objectives.

Some investors prioritise regular distributions, while others may prefer companies that reinvest more earnings into their businesses. Dividend income should therefore be considered alongside total return, which includes both dividends and changes in the share price.

Diversification across companies and industries can also help reduce reliance on a single business or source of earnings. It does not eliminate market risk or guarantee positive returns.

Also Read | Our top ticks for best Undervalued ASX Stocks

Final Thoughts on the Best Dividend Stocks ASX

The 10 companies covered in this article offer exposure to a range of Australian-listed and internationally diversified businesses. Their reported dividend yields range from 3.39% for Wesfarmers to 7.17% for McMillan Shakespeare, with different levels of dividend franking and different operating risks.

APA Group, Wesfarmers, Telstra, NAB, BHP, McMillan Shakespeare, JB Hi-Fi, QBE Insurance Group, Amcor and Super Retail Group each have distinct business characteristics that investors may wish to evaluate when researching dividend-paying shares.

Rather than selecting a stock on yield alone, investors may compare dividend history, earnings, cash flow, financial strength, valuation and industry exposure. Dividend yields and company results should be checked against current disclosures before making an investment decision.

FAQs About the Best Dividend Stocks ASX

1. What are the best high dividend yield stocks on the ASX?

Based on the supplied data, McMillan Shakespeare (ASX: MMS) has the highest reported annual dividend yield at 7.17%. Other stocks include Super Retail Group (ASX: SUL) at 4.83% and JB Hi-Fi (ASX: JBH) at 4.69%. Yields change with share prices and dividend payments.

2. Which ASX stocks pay monthly dividends?

Check each company's dividend schedule before investing. Telstra, for example, pays dividends semi-annually. The companies covered in this article are not confirmed as monthly dividend payers.

3. Which ASX stocks pay fully franked dividends?

The companies listed in this article with fully franked dividends include Wesfarmers (ASX: WES), NAB (ASX: NAB), BHP (ASX: BHP), McMillan Shakespeare (ASX: MMS), JB Hi-Fi (ASX: JBH) and Super Retail Group (ASX: SUL). Confirm the franking status of each payment before investing.

4. How do you calculate dividend yield?

Divide the annual dividend per share by the current share price, then multiply by 100.

Example: A $0.50 annual dividend on a $10 share price gives a 5% dividend yield.

5. Can ASX dividend stocks provide regular income?

Yes, dividend stocks can provide income through company payments. However, payment amounts and frequency vary, and companies can reduce or suspend dividends.

6. Are high-yield ASX stocks always a good investment?

No. A high yield may reflect a falling share price or concerns about the company's performance. Consider earnings, cash flow, debt and dividend history alongside yield.

(Source : Company Announcements)