{"menuItems":[{"label":"20 top ASX dividend stocks to watch in 2023","anchorName":"#20-top-asx-dividend-stocks-to-watch-in-2023"},{"label":"1. Yancoal Australia Ltd (ASX:YAL)","anchorName":"#1-yancoal-australia-ltd-asx-yal"},{"label":"2. Zimplats Holdings Ltd (ASX:ZIM)","anchorName":"#2-zimplats-holdings-ltd-asx-zim"},{"label":"3. Magellan Financial Group Ltd (ASX:MFG)","anchorName":"#3-magellan-financial-group-ltd-asx-mfg"},{"label":"4. Perpetual Ltd (ASX:PPT)","anchorName":"#4-perpetual-ltd-asx-ppt"},{"label":"5. Growthpoint Properties Australia (ASX:GOZ)","anchorName":"#5-growthpoint-properties-australia-asx-goz"},{"label":"6. Karoon Energy Ltd (ASX:KAR)","anchorName":"#6-karoon-energy-ltd-asx-kar"},{"label":"7. Wam Capital Ltd (ASX:WAM)","anchorName":"#7-wam-capital-ltd-asx-wam"},{"label":"8. Whitehaven Coal Ltd (ASX:WHC)","anchorName":"#8-whitehaven-coal-ltd-asx-whc"},{"label":"9. Woodside Energy Group Ltd (ASX:WDS)","anchorName":"#9-woodside-energy-group-ltd-asx-wds"},{"label":"10. Unibail Rodamco Westfield (ASX:URW)","anchorName":"#10-unibail-rodamco-westfield-asx-urw"},{"label":"11. Charter Hall Long WALE REIT (ASX:CLW)","anchorName":"#11-charter-hall-long-wale-reit-asx-clw"},{"label":"12. Insignia Financial Ltd (ASX:IFL)","anchorName":"#12-insignia-financial-ltd-asx-ifl"},{"label":"13. Alumina Ltd (ASX:AWC)","anchorName":"#13-alumina-ltd-asx-awc"},{"label":"14. Metrics Master Income Trust Unit (ASX:MXT)","anchorName":"#14-metrics-master-income-trust-unit-asx-mxt"},{"label":"15. Charter Hall Retail Reit (ASX:CQR)","anchorName":"#15-charter-hall-retail-reit-asx-cqr"},{"label":"16. Nanosonics Ltd (ASX:NAN)","anchorName":"#16-nanosonics-ltd-asx-nan"},{"label":"17. Bank Of Queensland Ltd. (ASX:BOQ)","anchorName":"#17-bank-of-queensland-ltd-asx-boq"},{"label":"18. Mcmillan Shakespeare Ltd (ASX:MMS)","anchorName":"#18-mcmillan-shakespeare-ltd-asx-mms"},{"label":"19. Fortescue Metals Group Ltd (ASX:FMG)","anchorName":"#19-fortescue-metals-group-ltd-asx-fmg"},{"label":"20. Helia Group Limited (ASX:HLI)","anchorName":"#20-helia-group-limited-asx-hli"},{"label":"How to pick the best ASX dividend stocks","anchorName":"#how-to-pick-the-best-asx-dividend-stocks"},{"label":"Video: Dividends explained","anchorName":"#video-dividends-explained"},{"label":"Found the best dividend stocks? Buy through an online broker","anchorName":"#buy"},{"label":"Frequently asked questions","anchorName":"#faq"}]}
How did we pick the best dividend stock list?
We filtered Australian stocks that had been public for at least 5 years with market caps of over $1 billion and then selected the 20 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.
Important note
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.
20 top ASX dividend stocks to watch in 2023
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.
Yancoal Australia Ltd sits is in the energy minerals sector, boasting a market capitalisation of $4.23 billion. The company has an attractive dividend yield of 15%, including a payout of $1.07 per share in 2023. Yancoal oversees extensive operations in New South Wales, Queensland and Western Australia with a history of contributing over $10 billion in foreign direct investment to Australia since 2004.
While the dividend yield is significant, it's also closely tied to the volatile coal market, a factor for investors to consider due to its impact on the company's financial distributions.
With a market capitalisation of $2.3 billion, Zimplats Holdings specialises in mining platinum group metals. The company's strategic focus has resulted in a healthy dividend yield of 12%, complimented by a total shareholder return (TSR) of 473% over the 2018–23 period. Earnings per share have seen a notable upward trajectory, far outstripping the share price increase.
Despite a slight recent retreat in share value, Zimplats' historical earnings growth and a low price-to-earnings (P/E) ratio underscore a positive sign for investors.
With a market capitalisation of $1.18 billion, Magellan Financial Group operates within the asset management and financial services sector. The company currently offers a high dividend yield of 12%.
In 2023, Magellan announced a comprehensive dividend payout, including various dividends reflecting the board's confidence in the business. However, the company's share price has witnessed a significant downturn over the 2020–23 period, which is reflected in a corresponding decline in earnings per share and the market's cautious valuation of the stock.
Perpetual Ltd, a Melbourne-based financial services firm, holds a market capitalisation of $2.17 billion. The company provides a dividend yield of 11.33% that stands above the sector's average despite a cut in the recent payout.
The share price and total shareholder return have experienced declines over the 2020–23 period, accompanied by a notable decrease in earnings per share annually, indicating the market's adjustment to the company's earnings outlook.
Growthpoint Properties Australia is a real estate investment trust listed on the ASX with a market capitalisation of $1.57 billion. It has maintained a dividend yield of approximately 10%, although its 5-year performance in the 2018–23 period shows a downward trend in share value and total shareholder return.
This decline is echoed in the earnings per share, which has diminished over the same period, reflecting the challenges faced in the real estate sector.
6. Karoon Energy Ltd (ASX:KAR)
Gas and oil exploration
Dividend yield: 10.53%
P/E ratio: 5.79
Net profit margin: ‪28.77%
Karoon Energy Ltd, headquartered in Australia, is engaged in the exploration and production of oil and gas, primarily in Brazil and Australia. The company focuses on identifying and developing oil-rich sites and adapting to the dynamic energy market.
As of 2023, the company had not announced any dividends, suggesting that profits are likely reinvested back into the business to fund exploration and development projects. Ownership of Karoon Energy is largely by individual investors who hold 59% of the shares, while institutional investors have a 40% stake.
WAM Capital Ltd is an investment company within the finance sector, boasting a market capitalisation of $1.64 billion and operating out of NSW, Australia. The company upheld a consistent dividend payment in FY2023, with a full-year dividend matching the previous year at 15.5 cents per share, fully franked.
In the 2022–23 financial year, WAM Capital reported an operating profit before tax of $233.2 million, a remarkable recovery from the prior year's loss. Its investment portfolio returned 18.2% over 12 months to 30 June 2023.
As a leading coal producer in Australia, Whitehaven Coal Ltd commands a market cap of $6.5 billion. The energy minerals company offers a substantial dividend yield of 9.59% as of October 2023, with the last 2 dividends being fully franked.
Despite the high dividends recently, which reflect volatile coal market prices, historical payouts from Whitehaven have been smaller, illustrating a potentially variable dividend pattern.
Woodside Energy Group, with a market cap of $65.62 billion, stands as Australia's largest independent oil and gas company. The company's dividend yield is significant at 9.82% as of October 2023, despite a 27% decrease in the interim dividend from the previous year.
In Q3 of 2023, Woodside reported an 8% increase in production and a 6% increase in revenue from the preceding quarter, although lower realised prices affected returns.
Unibail-Rodamco-Westfield, a major commercial real estate firm with a market cap of $10.8 billion, operates across Europe with a presence in Australia. The company has traditionally paid up to 90% of its adjusted recurring earnings per share as dividends, but paused these payouts from 2021–2023, prioritising debt reduction and internal funding.
URW trades at a discount compared to peers, suggesting potential for value reassessment if operational targets are met.
Charter Hall Long WALE REIT is a real estate investment trust with a market cap of $2.3 billion. It invests in Australian properties leased to tenants across various sectors.
Over the 2020–2023 period, the REIT's stock declined by 40%, indicating recent underperformance compared to the broader market. However, projections for 2025 suggest an 8.5% yield based on an annual distribution per security of 26.9 cents.
Insignia Financial Ltd is a financial services company based in Melbourne with a market capitalisation of $1.47 billion. The company has reduced its dividend to $0.093, resulting in an 8.69% yield.
Insignia's dividend history shows volatility with an average annual decline of 7.8% over the last decade. The company's earnings per share (EPS) have been declining over the 2018–23 period.
Alumina Ltd, with a market capitalisation of $2.31 billion, focuses on alumina and aluminium production. The company's dividend yield stands at 8.94%, though it has suspended dividends for the past 12 months amid operational challenges and a share value drop.
Historically, Alumina Ltd provided a 7.4% average yield over the 2018–23 period, fully franked.
14. Metrics Master Income Trust Unit (ASX:MXT)
Finance
Dividend yield: 8.51%
P/E ratio: 13.2
Net profit margin: ‪0.00%
Metrics Master Income Trust Unit, with a market cap of $1.783 billion, invests in Australian corporate loans aimed at delivering stable income mainly through interest payments.
The latest dividend from MXT was $0.01 per share, distributed on 9 October 2023, and was not franked, implying full tax liability for the investors on those dividends.
Charter Hall Retail REIT is an Australia-based real estate investment trust focusing on managing a portfolio of supermarket-anchored shopping centres. Its operations extend across the Australian landscape, capitalising on necessity-based retail sectors.
As of 2023, the trust boasts a market capitalisation of $1.85 billion, underlining its significant presence in the retail property market. With a dividend yield of 8.99%, the REIT's performance has been robust, providing shareholders with a higher return on investment compared to the industry average. The earnings per share of $0.065 suggest that its dividends are well covered, indicating a stable dividend outlook for investors.
In the healthcare sector, Nanosonics Ltd stands out for its specialisation in infection prevention technologies, notably in ultrasound probe disinfection with its product Trophon. The Sydney-based company, valued at a market capitalisation of $1.1 billion, employs a substantial workforce of 482 to support its international operations.
Despite the inherent volatility of share prices in the growth-oriented medical devices industry, the company has maintained a commitment to dividends, reflecting its reinvestment strategy for sustained growth.
Bank of Queensland Ltd (BOQ), with a market capitalisation of $3.60 billion, is a stalwart in the financial services industry, operating primarily out of Brisbane. The bank offers dividends with 7.95% yield, which is notable in the wake of market recoveries post-COVID. The bank's operations are heavily reliant on its lending activities, contributing to 90% of its income.
With a net interest margin slightly below the sector average and a return on equity of 8.4% compared to the sector's 11.74%, BOQ has areas to streamline for enhanced operational efficiency. These figures are fundamental for investors considering the bank's performance.
McMillan Shakespeare Ltd operates within the financial sector, offering salary packaging and vehicle leasing services. The company, with a market capitalisation of $1.2 billion and 1,290 employees as of 2023, has established itself as a key player in financial outsourcing.
Over the 2020–23 period, investors have witnessed a return of 110%, inclusive of dividends and capital growth. The company has shown robust long-term performance with a 1-year shareholder return of 33%. The company's earnings per share has surged annually at an impressive rate, potentially signalling earnings growth despite the share price experiencing a short-term decline.
Fortescue Metals Group Ltd is a heavyweight in the mining sector, focusing on iron ore production in Western Australia. With a significant market capitalisation, the company is lauded as one of the largest iron ore producers globally.
Dividends have been a part of Fortescue's shareholder returns, although past dividend cuts suggest variability. From 2013 to 2023, the dividend growth rate has been notable, yet history suggests caution for those relying on its consistency. Institutional investors hold a majority share, implying professional confidence in the firm. Fortescue's stock price has seen an appreciable increase over the past year which reinforces its market position.
20. Helia Group Limited (ASX:HLI)
Finance
Dividend yield: 7.82%
P/E ratio: 4.07
Net profit margin: ‪48.87%
Switch online brokers and save
Did you know you can save $1,046 in brokerage fees every year on average by switching to a cheaper share trading platform? Check out fees and features in our comparison table to find a better deal today.
We looked at the brokerage fees across 23 different share trading platforms and based the calculation on the average 6.7 trades made per week by Australian investors (source: ASIC) with trade values of $1,000 on ASX shares. To find out how we rank share trading platforms, you can read our ranking methodology.
Find a better deal
Get your free credit score and find new ways to save with the Finder app. Pop in your phone number below to get your download link.
How to pick the best ASX dividend stocks
As you'll know, there's no "best stock". A stock that's great for one person could be a bad pick for you, so there are different ways to approach dividend stocks.
While dividend yield or dividend per share are key factors in stock picking, there's no saying whether the next 5 years will deliver the same results (or better or worse).
However, dividend investors will typically look for the following attributes when selecting their stocks:
Low debt levels. You can check this in the company's profit results delivered twice a year or through its debt-to-equity (D/E) ratio.
Repeated profits. Companies only pay dividends if they are profitable and the longer they've been doing so, the more likely they will this year.
Business as usual post-COVID. The company is continuing to operate or has seen an increase in activity.
Bell Direct's head of distribution Tim Sparks also gave the following tips:
"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," Sparks says.
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," Sparks explains.
"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."
Video: Dividends explained
Found the best dividend stocks? Buy through an online broker
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 update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Important: 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.
Frequently asked questions
As a shareholder, you're entitled to company profits of any stocks you own. Public companies pay out these profits to shareholders in the form of dividends. If a company makes no profits or chooses to re-invest their earnings to grow the company, they wont pay a dividend. For more on this, check out our guide on dividend payments.
Franking credits, or imputation credits, are a type of tax break for shareholders who receive dividends from companies that have already paid tax on their profits. Company profits are already taxed at the corporate rate of 30%, so to avoid investors paying income tax for a second time on the dividends they receive, franking credits are offered to reduce the tax bills of shareholders by the amount that has already been paid by the company. For more on this, check out our guide on franking credits.
Dividends are typically paid out twice a year, although some companies may pay once a year, or in special cases, a few times a year.
Dividends in Australia are paid after the release of the company's half year or full year results. The exact date will be released with the results.
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.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs.
If you’re looking for ways to gain exposure to Bitcoin and other digital currencies, cryptocurrency ETFs could be worth exploring. Find out what crypto ETFs are and how they work in this introductory guide.
Looking for alternative investments? With a ROI of up to 3,593% lego may be worth considering. Read on to find out which lego sets are worth the investment.
Equity crowdfunding offers a unique opportunity for investors and for Australian startups, but Australia’s regulatory framework surrounding crowdfunding still lags behind the rest of the world.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
