Top 10 ASX Dividend Stocks to Watch in June 2025

As investors, one of the most attractive features of the Australian Securities Exchange (ASX) is its long-standing reputation for dividend-paying stocks. Particularly in a climate where interest rates and inflation fluctuate, dividend stocks offer a reliable income stream while often providing capital growth. But which ASX dividend stocks should investors keep an eye on as we move into June 2025?

In our view, identifying quality dividend stocks is more than just chasing yield; it’s about understanding the sustainability of payouts, company fundamentals, and growth prospects. We’re not talking about fleeting, high yields that come with risks; we’re talking about steady, dependable dividend payers that have weathered market volatility and continue to reward shareholders.

Let’s dive into the top 10 ASX dividend stocks poised to be of interest in June 2025, each backed by strong financials, attractive yields, and a credible outlook.

 

Why Dividend Stocks Matter in 2025

Before delving into the list, it’s worth revisiting why dividend stocks remain relevant, especially in the current economic environment.

Australia’s market is renowned for its high dividend yields compared to other developed markets. According to data from the ASX and RBA, dividend yields on the ASX have averaged around 4-5% over the past decade, offering a significant income component beyond capital appreciation.

But what makes a good dividend stock? Simply put, we believe it must have:

• Strong and sustainable cash flows to support consistent payouts.
• Reasonable payout ratios, avoiding over-distribution of profits.
• A resilient business model capable of weathering economic cycles.
• A clear growth or value proposition to maintain or grow dividends over time.

With inflation concerns persisting globally and the Reserve Bank of Australia’s cautious stance on interest rates, investors are increasingly turning to dividend stocks as part of their portfolio diversification and income strategies.

 

Top 10 ASX Dividend Stocks to Watch in June 2025

 

Commonwealth Bank of Australia (ASX: CBA)

Dividend Yield: Approximately 2.58% as of May 2025

The Commonwealth Bank stands tall as one of Australia’s banking giants, serving millions of retail, business, and institutional customers. Its diversified portfolio across retail banking, wealth management, and business lending helps generate a strong, stable cash flow. CBA’s commitment to technology and digital banking innovation has enhanced customer experience, contributing to consistent earnings growth.

In recent years, CBA has maintained a steady dividend payout even during periods of economic uncertainty, supported by its robust capital ratios and disciplined risk management. With the Australian economy stabilising and housing lending gaining momentum, the bank’s interest income is expected to improve, creating a favourable environment for dividend growth.

Why watch?

Investors should note that while regulatory reforms and competition from fintechs pose challenges, CBA’s entrenched market position and prudent financial management provide confidence in its dividend sustainability. The bank’s recent quarterly results showed strong net interest margins and lower bad debt provisions, reinforcing its capacity to reward shareholders generously.

 

BHP Group (ASX: BHP)

Dividend Yield: Approximately 5.03% as of May 2025

BHP is a cornerstone of the Australian mining sector and one of the world’s largest diversified resource companies. Its portfolio includes iron ore, coal, copper, petroleum, and potash. Despite cyclical commodity price fluctuations, BHP’s focus on cost efficiency and operational excellence has consistently delivered impressive free cash flows.

The company follows a progressive dividend policy, paying out a significant portion of its underlying profit as dividends. During periods of strong commodity prices, BHP often returns substantial excess cash to shareholders via special dividends, which appeals to income investors.

Why watch?

With global infrastructure spending, particularly in emerging markets, driving demand for key commodities, BHP remains positioned to benefit. Additionally, BHP’s efforts in decarbonisation and sustainable mining practices could unlock long-term value, underpinning dividend security. Investors should watch commodity price trends closely, as these will influence dividend levels in the near term.

 

Telstra Corporation (ASX: TLS)

Dividend Yield: Approximately 4.36% as of May 2025

Telstra is Australia’s largest telecommunications company, providing fixed line, mobile, internet, and media services. After a period of restructuring and divestments, the company has refocused on core telecommunications infrastructure and customer service improvements, including accelerated rollout of 5G networks.

Telstra’s commitment to streamlining operations and reducing costs has supported cash flow generation, enabling steady dividends despite competitive pressures. The company has also been investing in fibre networks, positioning itself for long-term growth in data demand.

Why watch?

For dividend investors, Telstra offers a blend of income and growth potential. The stabilising subscriber base and increasing data consumption bode well for earnings. Regulatory risks remain, but Telstra’s strategic moves to innovate and expand its service offerings should sustain its dividend payments.

 

Wesfarmers Limited (ASX: WES)

Dividend Yield: Approximately 2.43% as of May 2025

Wesfarmers operates across retail, industrial, and resources sectors. It owns some of Australia’s most recognised retail brands, including Bunnings Warehouse, Kmart, and Officeworks. These divisions provide stable cash flow thanks to strong market positions and consumer demand.

Wesfarmers’ industrial and resources arms, including chemicals and fertilisers, add diversification, insulating the company from retail sector cyclicality. The company has a history of prudent capital allocation, returning value to shareholders through dividends and share buybacks.

Why watch?

Investors benefit from Wesfarmers’ diversified earnings streams, with retail sales growth expected to remain solid, driven by housing activity and consumer spending. Its ability to manage costs and optimise operations supports dividend stability. Recent acquisitions and divestments also signal a focus on portfolio quality.

 

Transurban Group (ASX: TCL)

Dividend Yield: Approximately 4.37% as of May 2025

Transurban owns and operates urban toll road networks in Australia and North America, generating reliable cash flows from long-term concession agreements. Its business benefits from relatively inelastic demand, given the essential nature of transport infrastructure.

Although the COVID-19 pandemic impacted traffic volumes temporarily, recovery is underway with increased commuting and freight transport. Transurban’s investment in technology to enhance tolling efficiency and customer experience further strengthens its competitive edge.

Why watch?

With urban population growth and transport infrastructure needs, Transurban’s earnings visibility is solid. The company’s disciplined approach to capital expenditure and acquisitions helps maintain its generous dividend policy. Investors should monitor toll road usage trends and regulatory developments.

 

Fortescue Metals Group (ASX: FMG)

Dividend Yield: Approximately 9.10% as of May 2025

Fortescue has rapidly grown to become a leading iron ore producer, rivalling established miners like BHP and Rio Tinto. Its focus on operational efficiency, including automation and renewable energy integration, has reduced costs and boosted margins.

The company’s high dividend payout ratio is a major draw for income-focused investors. Fortescue has also made strides in green energy, with plans to expand green hydrogen and renewable energy projects, which may support future earnings diversification.

Why watch?

While iron ore prices remain volatile, Fortescue’s cost competitiveness positions it well to sustain dividends through the commodity cycle. Its green initiatives could open new growth avenues, potentially enhancing shareholder returns beyond traditional mining operations.

 

Woodside Energy Group (ASX: WDS)

Dividend Yield: Approximately 8.39% as of May 2025

Woodside Energy is Australia’s largest independent oil and gas producer, with a core focus on liquefied natural gas (LNG) projects both domestically and internationally. The company benefits from long-term contracts and high-quality assets, supporting steady cash flows even amid energy market volatility. Woodside is also advancing its transition strategy, investing in cleaner energy solutions such as hydrogen and carbon capture, aiming to balance growth with sustainability.

Why watch?

With global energy demand expected to remain robust, especially for natural gas as a transition fuel, Woodside is well-positioned to deliver consistent dividends. Its prudent capital allocation and disciplined cost management provide confidence in dividend sustainability, making it a compelling pick for income-focused investors in 2025.

 

APA Group (ASX: APA)

Dividend Yield: Approximately 6.92% as of May 2025

APA Group owns Australia’s largest gas transmission and distribution network, underpinning its stable earnings profile. The regulated nature of its business ensures predictable cash flows, which is a boon for dividend consistency.

As Australia’s energy landscape evolves, APA is expanding into renewable gas infrastructure and energy storage, aiming to maintain relevance amid decarbonisation trends.

Why watch?

The company’s regulated asset base and long-term contracts provide income visibility. Transition initiatives could enhance growth, potentially leading to dividend increases. Investors should watch regulatory reviews and gas market dynamics impacting APA’s profitability.

 

Goodman Group (ASX: GMG)

Dividend Yield: Approximately 4.37% as of May 2025

Goodman is a leading global logistics property group, managing industrial real estate including warehouses and distribution centres. The boom in e-commerce and supply chain modernisation has fuelled demand for Goodman’s facilities, driving rental growth and occupancy rates.

Goodman’s diversified tenant base and global footprint reduce risk exposure to any one market, while its active asset management supports income growth.

Why watch?

With logistics property set to remain in high demand, Goodman’s earnings and dividends should continue to grow. The company’s conservative leverage and strong balance sheet provide financial flexibility to capitalise on future opportunities.

 

AGL Energy (ASX: AGL)

Dividend Yield: Approximately 5.78% as of May 2025

AGL Energy is a major integrated energy company in Australia, spanning generation, retail, and renewables. It has faced pressures from the energy transition but remains committed to maintaining shareholder returns.

The company is actively reshaping its portfolio, including exiting coal assets and investing in renewables, aiming for a more sustainable business model.

Why watch?

AGL’s dividend sustainability depends on the successful execution of its transition strategy and market conditions. Cash flow from existing assets supports dividends, but investors should keep a close eye on policy changes and commodity prices impacting generation costs.

 

What Should Investors Watch for with ASX Dividend Stocks in June 2025?

Investors should ask: Are the dividends sustainable, and how do external factors like interest rates, inflation, and global commodity prices affect these companies?

We believe it’s crucial to monitor payout ratios alongside free cash flow. A company might offer a high dividend yield, but if it pays out more than it earns, that yield may not last. For instance, banks like CBA carefully manage capital buffers to maintain dividend payments despite economic shifts.

Furthermore, geopolitical tensions and supply chain issues may impact commodity producers like BHP and Fortescue, but these companies’ cost discipline often mitigates risks.

 

Final Thoughts

Dividend investing on the ASX continues to offer a compelling avenue for income-focused investors in 2025. The stocks we have discussed are not just high yielders; they are well-established companies with strategic plans for sustainable payouts.

Of course, no investment comes without risks. Market volatility, sector-specific challenges, and macroeconomic shifts require vigilance and ongoing analysis. But in our view, keeping a close eye on these top dividend stocks can help investors build a portfolio that balances income with growth potential.

As always, consider your financial goals and risk tolerance before investing, and seek advice from a financial professional.

 

What are the Best ASX Stocks to invest in right now?

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Frequently Asked Questions (FAQs)

• What is a good dividend yield on the ASX?

  A typical dividend yield on the ASX ranges between 4% and 6%. Yields above this range may indicate higher risk or cyclical payout patterns. Sustainable dividends usually come from companies with steady earnings and manageable payout ratios.

• How often do ASX companies pay dividends?

  Most ASX companies usually pay dividends semi-annually, though some pay quarterly or annually. Payment frequency depends on the company’s policy and industry norms.

• Are high dividend yields always better?

  Not necessarily. Extremely high yields can be a red flag if unsupported by earnings, indicating potential dividend cuts ahead. Quality and sustainability matter more than just yield size.

• How do interest rates affect dividend stocks?

  Rising interest rates can make fixed income investments more attractive relative to dividends, potentially putting downward pressure on dividend stock prices. However, companies with strong fundamentals often maintain dividends despite rate changes.

• Should I reinvest dividends or take cash?

  Reinvesting dividends can compound returns over time, but some investors prefer cash for income needs. The choice depends on your investment goals and financial situation.