Finder makes money from featured partners, but editorial opinions are our own.

Best dividend stocks on the ASX for 2023

20 highest yielding ASX dividend stocks to watch in 2023 (updated monthly).

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.

All below data is as of 1 November 2023.

1. Yancoal Australia Ltd (ASX:YAL)

  • Energy Minerals
  • Dividend yield: 15.32%
  • P/E ratio: 2.32
  • Net profit margin: ‪29.00%

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.

2. Zimplats Holdings Ltd (ASX:ZIM)

  • Non-Energy Minerals
  • Dividend yield: 12.35%
  • P/E ratio: 7.9
  • Net profit margin: ‪21.35%

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.

3. Magellan Financial Group Ltd (ASX:MFG)

  • Finance
  • Dividend yield: 12.27%
  • P/E ratio: 6.4
  • Net profit margin: ‪42.40%

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.

4. Perpetual Ltd (ASX:PPT)

  • Finance
  • Dividend yield: 11.33%
  • P/E ratio: 26.05
  • Net profit margin: ‪5.71%

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.

5. Growthpoint Properties Australia (ASX:GOZ)

  • Finance
  • Dividend yield: 10.86%
  • P/E ratio: 0
  • Net profit margin: ‪-73.78%

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.

7. Wam Capital Ltd (ASX:WAM)

  • Finance
  • Dividend yield: 10.26%
  • P/E ratio: 9.43
  • Net profit margin: ‪78.03%

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.

8. Whitehaven Coal Ltd (ASX:WHC)

  • Energy Minerals
  • Dividend yield: 10.00%
  • P/E ratio: 2.37
  • Net profit margin: ‪43.94%

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.

9. Woodside Energy Group Ltd (ASX:WDS)

  • Energy Minerals
  • Dividend yield: 9.92%
  • P/E ratio: 6.11
  • Net profit margin: ‪35.85%

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.

10. Unibail Rodamco Westfield (ASX:URW)

  • Real estate
  • Dividend yield: 9.48%
  • P/E ratio: 2.58
  • Net profit margin: ‪-34.04%

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.

11. Charter Hall Long WALE REIT (ASX:CLW)

  • Finance
  • Dividend yield: 9.11%
  • P/E ratio: 0
  • Net profit margin: ‪-84.88%

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.

12. Insignia Financial Ltd (ASX:IFL)

  • Finance
  • Dividend yield: 9.03%
  • P/E ratio: 26.48
  • Net profit margin: ‪2.64%

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.

13. Alumina Ltd (ASX:AWC)

  • Mining
  • Dividend yield: 8.94%
  • P/E ratio: 0
  • Net profit margin: ‪0.00%

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.

15. Charter Hall Retail Reit (ASX:CQR)

  • Finance
  • Dividend yield: 8.46%
  • P/E ratio: 46.92
  • Net profit margin: ‪14.87%

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.

16. Nanosonics Ltd (ASX:NAN)

  • Medical instruments & supplies
  • Dividend yield: 8.00%
  • P/E ratio: 57.42
  • Net profit margin: ‪11.98%

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.

17. Bank Of Queensland Ltd. (ASX:BOQ)

  • Finance
  • Dividend yield: 7.95%
  • P/E ratio: 28.42
  • Net profit margin: ‪7.33%

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.

18. Mcmillan Shakespeare Ltd (ASX:MMS)

  • Finance
  • Dividend yield: 7.88%
  • P/E ratio: 37.44
  • Net profit margin: ‪6.96%

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.

19. Fortescue Metals Group Ltd (ASX:FMG)

  • Non-Energy Minerals
  • Dividend yield: 7.85%
  • P/E ratio: 9.47
  • Net profit margin: ‪28.44%

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.

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.

1 - 6 of 6
Name Product Price per trade Inactivity fee Asset class International
Finder AwardExclusive
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
CFD service. Capital at risk.
Exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
CMC Markets Invest
ASX shares, Global shares, Options trading, US shares, mFunds, ETFs
Special offer: Transfer your international stocks to CMC Invest and receive $100 credit on your trading account until Nov 30, 2023 (T&Cs apply).
Trade up to 35,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges. Plus, buy Aussie shares for $0 brokerage up to $1,000. (Limited to one buy order per stock per trading day).
Moomoo Share Trading
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts (see link for details). T&Cs apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 18 million investors.
Tiger Brokers
ASX shares, Global shares, US shares, ETFs
Finder exclusive: Get 15 commission-free trades on US or ASX equities for the first 180 days plus US$50 fractional shares when you deposit at least $500 within the first 7 days of account opening. Plus, all new customers get 1 free trade per month for the first 12 months (T&Cs apply).
Get one brokerage-free trade per month for the first 12 months for US or ASX markets. T&Cs apply.
ASX shares, Options trading, US shares, ETFs
Fund your new account with $500 and place 1 trade to get $100 in free rewards until November 30, 2023. Plus, earn up to 5.2% p.a. interest on your US cash account (T&Cs apply).
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
IG Share Trading
Finder Award
IG Share Trading
ASX shares, Global shares, US shares, UK shares, ETFs
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian and international shares, plus get access to 24-hour customer support.

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

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.

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site