Dividends can be one of the most important considerations for Australian investors, especially those who are looking to live off the income their shares provide.
Well-established blue-chip companies like the banks are less likely to see substantial share price growth over many years, so dividends are often seen as the key reason to invest in them.
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.
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 July 2025.
We filtered Australian stocks with market caps of over $1 billion, annual revenue growth and EPS over 25% and then selected the 10 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.
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.
Dividend investors will typically look for the following attributes when selecting their ASX dividen stocks:
"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,"
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,
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."
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 currently don't have that product, but here are others to consider:
How we picked theseWe've scored over 30 share trading platforms assessing them for their core features, fees, customer experience and accessibility. Our experts give each platform a score out of 10.
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.
| Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| I don't earn any dividends | 45.63% | 38.64% | 41.1% | 39.09% | 35.71% |
| Less than $500 | 12.62% | 10.61% | 8.22% | 14.21% | 15.22% |
| No idea | 11.65% | 7.95% | 20.55% | 11.68% | 12.73% |
| Between $500 - $2000 | 10.68% | 12.5% | 6.85% | 12.18% | 7.76% |
| I reinvest my dividends | 5.83% | 10.61% | 8.22% | 7.11% | 10.87% |
| $10001-$20000 | 3.88% | 4.17% | 1.37% | 2.03% | 2.8% |
| Over $20000 | 3.88% | 4.17% | 1.37% | 3.05% | 4.66% |
| $2001 - $5000 | 2.91% | 4.92% | 10.96% | 5.58% | 8.7% |
| $5001 - $10000 | 2.91% | 6.44% | 1.37% | 5.08% | 1.55% |
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.
We used Finder's proprietary algorithm to find the 10 best stocks under $10 on the ASX.
We used Finder's proprietary algorithm to find Australian-listed companies that have strong fundamentals and have a share price under $5.
Best performers included Yandal Resources, Falcon Metals and Santa Fe Minerals.
Top gainers included Iluka Resources, Johns Lyng Group and Metals X.
If you're thinking of trading stocks with Tiger Brokers, check out our review of this online broker's fees, safety and pros and cons first.
Here are our algorithm-selected 20 Aussie stocks worth watching in 2025.
You can't access Robinhood in Australia, so here are 6 low-cost alternatives to trade US stocks.
Here's what investors should know before adding AI stocks to their portfolios.
Find out how you can invest in Nasdaq and compare a range of leading brokers that let you invest in US stocks cheaply and quickly.
Follow these tips to find the best share trading platform for you.