Best ASX dividend stocks, I would invest in with $5000

If your goal is to generate reliable high yield passive income, the following ASX dividend stocks which are trading at discounted valuations and supported by predictable cash flows could be attractive additions to portfolio.

McMillan Shakespeare Limited (ASX: MMS)

delivered a solid FY25 performance as steady demand for novated leasing and continued uptake across salary packaging supported overall earnings stability.
The company’s ongoing digital transformation program played an important role during the year as investments in automation data platforms and customer facing technology improved service quality and lifted employee productivity across the business.

Normalised revenue increased by 3% to $541.6 million while normalised UNPATA reached $103.2 million which highlights MMS’s ability to grow earnings even in a competitive environment.
These results were supported by disciplined cost management alongside a very strong balance sheet with $126.3 million in cash.

McMillan Shakespeare continues to reward shareholders with fully franked dividends twice a year and currently offers an attractive annual dividend yield of 8.83%.

APA Group Limited (ASX: APA) 

is a major Australian energy infrastructure owner and operator with assets across gas transmission, storage, power generation and electricity transmission which deliver stable and highly predictable cash flows.
In FY25, the company reported a solid operating performance with underlying EBITDA of almost $2.02 billion and free cash flow of $1.08 billion while FY26 distribution guidance is set at 58 cents per share.

The Board declared an unfranked dividend of 27.5 cents per share with an ex-dividend date of 30 December 2025 and payment is scheduled on 18 March 2026 while current annual yield is 6.09%.

APA continues to maintain a strong balance sheet with no significant debt maturities until 2027 and ample liquidity to support its organic growth pipeline which positions it as a reliable passive income option for investors.

Atlas Arteria Limited (ASX: ALX) 

owns and operates essential toll road assets across France, Germany and the United States and in the September quarter, the company delivered a strong operating update as proportionate toll revenue increased by 10.9% year-on-year which was supported by healthy traffic growth and contractual toll increases.

Traffic growth was relatively high with Dulles Greenway delivering double digit volume growth and Chicago Skyway benefiting from seasonal commuter demand.

The business continues to benefit from CPI linked toll escalation mechanisms which provide natural inflation protection and support earnings even during periods of economic uncertainty.

ALX pays unfranked dividends twice a year and at current levels offers an attractive annual dividend yield of approximately 8.26% which positions it among the highest infrastructure stocks on the ASX.

G8 Education Limited (ASX: GEM)

operates a large portfolio of early learning and childcare centres across Australia which provide essential services and generates recurring cash flows.

In the first half of CY2025, the company delivered a steady operating result with revenue of $465.4 million and reported net profit after tax of $22.5 million which increased by 12.4% from the same period last year.
The company has maintained a conservative balance sheet with low leverage while continuing to focus on improving occupancy and service quality.

G8 Education pays fully franked dividends twice a year and at the current valuation, the stock offers an attractive annual dividend yield of 7.77% which makes it appealing for income focused investors.

(Source: Company Announcements)