If you’re an income-focused investor, Australian dividend stocks might be a solid choice to build wealth and generate passive income. Many ASX stocks are offering above-average dividend yields, which can provide you with a steady income stream. To help you navigate through the options, we’ve picked out five ASX dividend stocks that are currently considered top buys by analysts. These companies offer attractive yields and have the potential for future growth.
1. Centuria Industrial REIT (ASX: CIP)
Centuria Industrial REIT is an industrial property investment company, owning a portfolio of industrial assets valued at $3.8 billion. With demand for industrial spaces rising due to the e-commerce boom, Centuria Industrial is well-positioned for growth in the near future. Analysts at UBS believe that Centuria is set to deliver strong dividend yields of 5.1% in FY 2025, with the potential to rise to 5.4% by FY 2026.
The company's resilience in the industrial sector, combined with its consistent dividend payouts, makes it a top pick for investors looking for reliable income. With a buy rating from UBS and a price target of $3.80, Centuria Industrial could be a good long-term investment for those seeking stable dividends.
2. Eagers Automotive Ltd (ASX: APE)
Eagers Automotive is one of the largest automotive retail groups in Australia, representing 19 of the top 20 selling car brands in the country. The company has over 250 locations in Australia and New Zealand, making it a dominant player in the automotive retail space.
Eagers has seen a dip in its share price this year, which analysts from Bell Potter suggest could present a buying opportunity. The company is forecasted to pay fully franked dividends of 66.5 cents per share in FY 2024, rising to 73 cents per share in FY 2025. With a dividend yield expected to reach 6.2% in 2025, Eagers Automotive is a great option for those seeking high dividends from a strong and diversified business.
3. Origin Energy Ltd (ASX: ORG)
Origin Energy is a leading provider of electricity, gas, and renewable energy across Australia. The company's diversified operations, especially its earnings from Australia Pacific LNG (APLNG), make it a robust choice for dividend investors.
Goldman Sachs expects Origin Energy to deliver a fully franked dividend yield of 5% in FY 2025, which could rise to 5.7% in FY 2026. With analysts projecting steady free cash flow and a strong outlook, Origin’s dividends appear sustainable, offering solid returns for income-seeking investors. Its diversified energy portfolio also positions the company to weather market fluctuations better than many of its peers.
4. APA Group (ASX: APA)
APA Group is a key player in energy infrastructure, owning and operating gas pipelines and renewable energy assets such as wind and solar farms. The company has an impressive record of consistently increasing dividends for almost two decades. Macquarie analysts predict that APA will maintain this trend, with dividend yields expected to hit 8% in FY 2025 and 8.1% in FY 2026.
Given its track record and its position in the energy sector, APA Group is a strong pick for dividend investors. The company's reliable infrastructure assets provide a steady revenue stream, which in turn supports its high dividend payouts.
5. Inghams Group Ltd (ASX: ING)
Inghams Group is Australia’s largest poultry producer, supplying chicken products across the nation. Despite facing challenges like rising input costs, Inghams remains a solid choice for dividend-seeking investors, thanks to its dominant market position and strong earnings outlook.
Morgans analysts forecast Inghams to pay fully franked dividends of 19 cents per share in both FY 2025 and FY 2026, equating to a dividend yield of 6.7%. With a buy rating and an upside potential of nearly 30%, Inghams represents a strong opportunity for investors looking for high yields in the consumer goods sector.
Why These Dividend Stocks Stand Out
The stocks highlighted above have one key thing in common: they offer attractive dividend yields backed by strong business fundamentals. Whether it’s Centuria Industrial’s exposure to the growing industrial real estate market, APA Group’s energy infrastructure dominance, or Eagers Automotive’s extensive retail footprint, each company has a solid base to continue rewarding investors with consistent dividend payments.
For income investors, adding one or more of these stocks to your portfolio could provide a reliable source of income, along with the potential for capital growth in the future. Keep in mind, however, that it’s always important to diversify your investments and consider each stock's long-term outlook before making any decisions.
