Free Stock Report
Best Dividend Stocks
Which is your preferred stock strategy? Is it growth investing, where you take a chance that companies with above-average growth will continue to do so? Or would you prefer dividend stocks with a company that regularly shares its profits in the form of dividends to its investors? If you’ve been looking for high dividend stocks on the ASX, our analysts have done the research and identified the best dividend stocks for your portfolio.
Get A Free Report On High Dividend Stocks ASX
How important is our free report? A key concept behind dividend stocks is their ability to provide a regular income stream. Many investors seek this form of passive income by selecting the top dividend stocks on the ASX. These are well-established companies that have proven to be consistently profitable and regularly issue dividend payments. Their stocks typically add more stability to a portfolio than growth stocks.
In Australia, a possible taxation advantage of investing in high-yield
ASX dividend stocks is called “franking credit”. Basically, when a company pays income tax, the ATO provides the company with a credit of the same value (franking credit). Later, this tax credit can be passed on to shareholders when they receive dividends from the company. (For Australian shareholders, more tax details can be found
here.)
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best dividend stocks in
Australia from our ASX dividend portfolio.
Backed by results
+26.49%
Our ASX return for FY25
vs. Market Return of 10.21%
+24.61%
Our US return for FY25
vs. Market Return of 13.33%
+13.35%
Our ASX return for FY24
vs. Market Return of 7.80%
Download your free dividend stocks report now.
What Are Dividend Stocks?
Dividend stocks are publicly traded companies that regularly share their profits with investors through dividends. It’s important to realise that you can also buy stocks that don’t offer a dividend payment. There is absolutely no requirement for any company to provide dividend payments on its stock. Therefore, a company might reinvest its money and profits into its expanding business to fuel further growth. In such a case, the goal is to increase the value of its shares rather than pay a dividend.
On the other hand, a dividend is part of a company’s profits that it decides to pay its shareholders. Dividend stocks in Australia usually pay out their dividends once or twice per year after the company announces its half-year or full-year results. For example, stock dividend payment dates 2024 might be in June and December, but it depends on the company. If the company has already paid tax on the profits, it can pass this on as franking credits, along with the dividends, to its stockholders. These franking credits might allow an individual investor to reduce the amount of personal income tax that needs to be paid.
Dividends are worked out and paid on a per-share basis. Depending on the company, investors have the option to receive a cash payment dividend or to reinvest the dividend into buying new shares in the company to grow their portfolio. To compare their returns on investment, many shareholders calculate the dividend yield of their portfolio, which is the value of the dividend divided by the share price.
Performance Matters.
At Sharewise, every stock report is built on the same principles that have driven our portfolios to outperform the market — data, discipline, and depth of research.
Over the past year, our analysts have delivered strong results across the Australian market:
+26.49%
Our ASX return for FY25
vs. Market Return of 10.21%
+24.61%
Our US return for FY25
vs. Market Return of 13.33%
+13.35%
Our ASX return for FY24
vs. Market Return of 7.80%
Past performance is not indicative of future performance.
How these stock reports can help you.
Markets move fast — and new opportunities emerge every day.
Our stock reports cut through the noise, helping you identify quality companies backed by strong fundamentals and credible management.
Each report is curated by the Sharewise analyst and research team, combining data, financial analysis, and clear investment theses — giving you the insights to make confident, well-informed decisions.
Inside the Dividend Stock Report
Get detailed analysis of ASX-listed companies positioned to deliver sustainable dividend income.
Each profile includes:
- Investment thesis — crafted by our analysts, outlining why we believe each company could outperform and the key factors driving our view
- Company overview — what they do, their projects, and production outlook
- Fundamentals — valuation metrics, financial health, and operating performance
- Financial statements — revenue, profit trends, and balance sheet strength
- Major shareholders — institutional, insider, and strategic holders to note
Why invest in the best Australian dividend stocks?
- You can profit in two different ways with dividend stocks. First, you receive regular dividend payments. Second, the value of the stock itself can also rise over time, increasing your assets.
- It’s a predictable form of passive income. You can look over the track record of dividends for a particular stock and estimate what the future returns might look like.
- They are usually lower risk than non-dividend stocks, which tend to be more volatile. This is because dividend stocks are usually quality businesses that have predictable earnings.
- If the company has already paid tax on the profits before it issues the dividends, the shareholders can receive a “franking credit” to reduce any tax they need to pay.
- Many companies offer you the opportunity to reinvest the dividends to buy more stock and grow your assets. Reinvesting your dividend income in this way can really boost future returns on your investment portfolio.
What Our Clients Are Saying!
How To Choose The Best Dividend Stocks?
How do you find the best dividend stocks, including the best bank dividend stocks, in Australia?
- Does the stock have a history of dividend performance? If you’re looking for regular income, you should consider companies that have a good track record of paying high dividends. Generally, these are larger companies on the Australian Securities Exchange (ASX). As an extra tip, you’ll find that smaller companies tend to focus on their growth. So they tend to reinvest profits to grow the business rather than pay dividends.
- Company stability is an important factor. Does the company you’re considering have a strong balance sheet and stable earnings growth? If its earnings are too volatile, there might be better candidates for your investment in dividend stocks.
- What is the growth potential of the company’s sector? Is it shrinking or expanding?
- Does the company have relatively low capital expenditure? In Australia, if a company’s capital expenditure is too high, such as with an airline that needs to maintain and upgrade to new aircraft every few years, there’s far less money to distribute as dividends.
Our Return vs. The Market
Our performance for the current financial year compared against the market benchmark.
Past performance is not indicative of future performance.
How Sharewise Helps You Choose the Best Dividen Stocks.
Institutional Quality Research
Make informed decisions with confidence.
Dive into comprehensive stock-specific analysis, focused on all companies, from blue-chip to micro-cap. Our extensive research, led by Chief Investment Office Rabbi (Rabih) Ahmed, and support by our team of equity research analysts, ensure you have a deep understanding of the market landscape to invest with clarify and assurance.
Account & Portfolio Management
Your investments, our dedicated attention.
With a dedicated stockbroker, you can rest easy knowing your investments are under expert care. A Sharewise Managed Account allows your advisor to manage your portfolio on your behalf, ensuring strategic decision-making, timely buy and sell actions, and seamless trade execution. We conduct quarterly portfolio reviews and strategy sessions with you so you can enjoy a hands-off investment process.
Dedicated Investment Manager
Your partner in navigating the markets.
Our investment managers are licensed professionals with expert knowledge of the markets. They monitor stocks and market trends daily, managing risk while optimising your portfolio. Focused on maximising returns, they ensure your investments are actively managed and aligned with your objectives.
Timely Stock Recommendations
Never miss an opportunity.
Backed by in-depth research and a clear investment thesis, our buy and sell recommendations go beyond simple tips. Each recommendation is a strategic insight built on real company data, financial fundamentals, and advanced technical analysis. We focus on ensuring you understand exactly what you're investing in and why, delivering actionable trade opportunities with clear rationale.
Professional Risk Management
Stay focused, even in volatile markets.
We take emotions out of investing. Our investment managers use research, data and market signals to guide decisions. By staying disciplined and responsive to market changes, we help investors remain focused when markets move quickly.
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Never miss an opportunity.
Our exclusive client portal gives you 24/7 access to our daily market research, in-depth stock analysis, and buy/sell recommendations. Whether you're at home or on the go, you can stay informed with up-to-date insights and make well-informed decisions. Our user-friendly platform ensures you’re always connected to the latest market trends, putting expert guidance at your fingertips.
Your Investment Journey to Wealth Creation.
Discover how Sharewise helps you build lasting wealth through expert advice, market intelligence, and proactive portfolio support - every step of the way.
Step 1: Start Your Journey with Confidence
Speak with one of our experienced investment managers to understand how we work and how we can support your investment objectives. Whether you’re new to investing or looking to take the next step, we’ll meet you where you are.
Step 2: Navigate the Markets with Clarity
Access our global market updates and institutional-grade research designed to help investors make more informed decisions across all conditions.
Step 3: Act on Research-Backed Ideas
Access timely buy and sell recommendations based on technical and fundamental analysis - helping you act with conviction when opportunities arise.
Step 4: Portfolio Oversight
Stay connected to your investments with ongoing oversight from your Sharewise investment manager. We help you monitor your portfolio, provide general advice based on market conditions, and keep you informed about opportunities that may impact your holdings.
Step 5: Build Resilience Through Risk Management
We support you in identifying and managing risk through research-led insights and regular updates - helping you stay focused, even when markets shift.
Step 6: A Journey of Long-Term Success
Your investment journey doesn’t end with one trade. We’re here for the long haul - providing continuous insights, opportunities, and support to help you stay on track over time.
Top Dividend Stocks To Watch On The ASX
What are the advantages of investing in high dividend stocks on the ASX? These are larger companies with an excellent record of paying dividends to their investors. These companies include (for example):
- Telstra
- Commonwealth Bank
- BHP Group
- Woolworths
- Westpac Banking Corporation
Not only do these top dividend stocks on the ASX provide a regular income stream for investors, but you can also reinvest your dividends to purchase more stock. This can help create a ‘snowball’ effect where the capital value of your shares increases alongside their higher dividend returns.
Your Success in the Market Starts Here.
At Sharewise, our approach to investing is built on clarity, precision, and strategy. By combining technical and fundamental analysis, we uncover opportunities and manage risk with a data-driven mindset. Our diversified approach ensures portfolios remain balanced, resilient, and adaptive to global market shifts.
Whether you’re navigating volatility or pursuing growth, our insights are designed to simplify complexity and empower informed decisions.
Data-Driven Decisions
Our investment philosophy combines technical and fundamentalanalysis to uncover opportunities and manage risk with precision. Every recommendation is backed by data, research, and professional expertise — ensuring each move is informed and strategic.
Superior Strategy
We take a diversified, multi-asset approach to investing, balancing risk and reward across global markets. This strategy is designed to enhance returns, manage volatility, and protect your portfolio through all market cycles.
Resilient and Adaptable
Markets evolve — and so do we. Our team proactively adjusts strategies in response to global economic and political shifts, positioning portfolios to capture growth during bullish phases and remain resilient during downturns.
Effortless Portfolio Oversight
Your dedicated advisor manages the day-to-day performance of your portfolio while you remain in control of all trading decisions through our non-discretionary structure. This balance of professional management and client approval provides transparency, accountability, and confidence.
Strategic Risk Management
We carefully balance position sizes, correlations, and volatility to safeguard your investments. Through ongoing, proactive risk assessment, we maintain portfolio resilience and stability across changing market conditions.
Curated Market Insights
Our in-house analysts deliver institutional-grade research and stock recommendations, giving you access to the same calibre of insight used by professional investors.
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Frequently Asked Questions.
What are the benefits of dividend stocks compared to other types of stocks?
Dividend stocks can provide a regular income stream. This is important for retired people and others who seek a more reliable income from their investments. Also, the best dividend stocks have much lower risk than rapid-growth stocks, which have no reliable track record. Another benefit is that if you reinvest your dividends into more shares, you will increase the capital value of your portfolio plus get higher dividends in general.
What types of companies typically offer dividend stocks?
If you’re looking for top dividend stocks on the ASX, some of the typical sectors that offer them are utilities, supermarkets (such as Woolworths), and telecommunications (such as Telstra). No matter how the economy is doing, people will always need electricity, food, and phones (not to mention banks). So, these companies tend to offer stable and consistent dividends to their investors.
Are there dividend paying companies in Australia?
Yes, there are numerous high dividend stocks on the ASX (Australian Securities Exchange) and they span various sectors. Some well-known dividend-paying companies include Telstra, Commonwealth Bank, BHP Group, Woolworths, and Westpac Banking Corporation. These companies have a track record of distributing dividends to their shareholders. However, the dividend landscape can change over time, so it's essential to stay updated on the latest financial reports and dividend announcements to make informed investment decisions.
Are stock dividends safe?
A better word to use might be ‘safer’. No stocks are entirely safe, but the best dividend stocks are very stable companies with a consistent track record of paying regular dividends. This is considered much safer than investing in companies that might be experiencing rapid growth but are often high-risk.
How to invest in dividend stocks in Australia?
To invest in the best dividend stocks, you can open a brokerage account and start buying shares of dividend-paying companies listed on the ASX. Diversifying your portfolio across various sectors can help spread risk. Alternatively, consider investing in dividend-focused exchange-traded funds (ETFs) or managed funds that provide exposure to a basket of dividend stocks. These funds offer a more diversified approach to dividend investing and are suitable for both beginners and experienced investors.
Which Australian stocks have the highest dividends?
Several top dividend stocks on the ASX offer high dividends, but the highest dividends may come from sectors like utilities, real estate investment trusts (REITs), and financials. However, keep in mind that high dividend yields may indicate higher risk, so you should conduct thorough research to assess the sustainability of these payouts.
Can you lose money in dividend stocks?
Yes. All stocks carry an element of risk. While growth stocks are generally known to be more volatile, even dividend stocks are capable of losing money. This could occur due to fluctuating market conditions. It could also happen in a scenario where a company might pay out too much in dividends and not spend enough money on things necessary to deliver and expand. In such a case, the company’s viability will drop and so will its stock price and dividend payments.
Why do stock prices drop after dividends?
Any high dividend stocks on the ASX will tend to drop after the dividend is paid out. This is often attributed to the fact that the company's overall value will drop by the amount of the total dividend payout. Another factor is that, now that those dividend shares begin to trade without being entitled to the latest dividend, new investors have little or no incentive to buy the stock.
Are stock dividends taxable?
Yes. You are liable to pay income tax for that income year on the dividends you are paid or credited. It doesn’t matter if the dividend is paid to you as money or other property, including shares. It is still taxable. With the best dividend stocks, the good news is that, sometimes, the dividends might be ‘franked’. This means that the company has already paid tax on the profits, and the shareholders usually don’t have to pay tax again on the same money. Check with your accountant for the exact details and whether this applies to you.
Can I buy stocks on the day before the ex-dividend date?
Yes, you can. An ex-dividend date is the day that those dividend shares begin to trade without being entitled to the latest dividend. So, if you buy dividend stocks one or more days before their ex-dividend date, you’ll still get the dividend payment.
