Building a reliable passive income stream is a key goal for many investors, and high-quality dividend stocks are a great way to achieve it. The Australian Securities Exchange (ASX) offers several companies that pay consistent dividends. Here, we’ll take a look at three ASX-listed stocks that not only offer strong dividend yields but also present solid growth potential.
Why Is GQG Partners Inc. (ASX: GQG) a High-Yield Dividend Powerhouse?
One of the top dividend stocks on the ASX right now is GQG Partners Inc. (ASX: GQG), a global funds management business that might not be as well-known as companies like Commonwealth Bank or BHP, but is highly appealing for income-focused investors. GQG is committed to paying 90% of its distributable earnings as dividends, which translates into a dividend yield of 7.8% in FY 2025. This yield is much higher than what many traditional dividend stocks offer. Unlike companies that need to reinvest large amounts of capital to grow, GQG operates a capital-light business, meaning it can generate strong earnings growth without huge expenses.
In the first half of 2024, GQG’s funds under management (FUM) grew by 46.5%, reaching $160.8 billion by August. This led to a 53.7% increase in distributable earnings, providing a solid foundation for continued dividend payouts. Importantly, GQG pays dividends quarterly, offering consistent income throughout the year.
Why Is HomeCo Daily Needs REIT (ASX: HDN) a Great Option for Property Investors?
If you’re looking to diversify your dividend portfolio with real estate exposure, HomeCo Daily Needs REIT (ASX: HDN) is a strong option. This real estate investment trust (REIT) focuses on essential retail properties like shopping centres, where major retailers such as Coles, Woolworths, and Wesfarmers are the key tenants.
Around 80% of HomeCo's tenants are national retailers, many of whom offer click-and-collect services, ensuring a stable demand for its properties. Morgans, a well-regarded investment broker, notes that HomeCo’s properties are strategically located in high-growth areas, enhancing its cash flow stability.
In terms of dividends, HomeCo is expected to deliver 8.5 cents per share in FY 2025, offering a yield of 6.85% based on the current share price. By FY 2026, the dividend is forecast to increase, pushing the yield to around 7%. With a strong development pipeline, HomeCo has room for growth, which could further boost future dividend payments.
How Does Origin Energy Ltd (ASX: ORG) Provide Strong Dividends in the Energy Sector?
Energy companies often deliver strong dividends, and Origin Energy Ltd (ASX: ORG) is no exception. As one of Australia’s largest energy providers, Origin supplies electricity, gas, and renewable energy to millions of customers across the country. Analysts at Goldman Sachs are optimistic about Origin’s earnings outlook, especially from its Australia Pacific LNG (APLNG) division, which accounts for about half of the company’s earnings. This division provides a stable income stream, protecting Origin from fluctuations in electricity prices.
In FY 2025, Origin is expected to pay a fully franked dividend of 48 cents per share, offering a yield of 4.6%. This could increase to 58 cents per share by FY 2026, pushing the yield to 5.6%. Goldman Sachs has a “Buy” rating for Origin, with a price target of $10.75, making it a solid option for investors looking to add exposure to the energy sector while enjoying a steady dividend.
Which ASX Dividend Stocks Offer the Best Long-Term Potential?
All three companies—GQG Partners, HomeCo Daily Needs REIT, and Origin Energy—offer attractive dividend yields and growth potential, making them excellent choices for investors seeking passive income. GQG Partners stands out with its 7.8% yield and quarterly payments, while HomeCo offers real estate exposure with a stable tenant base and 6.85% yield. Origin Energy combines stability with growth in the energy sector, offering a yield of up to 5.6%.
By focusing on these stocks, you can build a well-diversified portfolio that generates reliable income, providing a foundation for long-term financial growth.
