3 ASX Dividend Stocks to Enhance Your Holiday Season

Trading Random
Dec 11

As Christmas approaches, Australians are focusing on celebrations, yet some are turning their attention to finding dividend stocks on the ASX that could provide extra financial cheer into the new year.

If you're among those looking for income-generating investments, three standout options feature resilient business models, positive outlooks, and strong commitments to shareholder returns.

APA Group (ASX: APA)

The energy infrastructure leader, APA Group, has spent two decades expanding and operating one of Australia's vital gas pipeline networks. Known for its stable, regulated earnings profile, APA has long been favored by dividend investors, supported by its FY25 results.

The company reported a growth of over 6% in underlying operating earnings (EBITDA), driven by moderate margin expansion and robust demand for gas transport. As APA undertakes key expansion projects, including upgrades to the East Coast Gas Grid, it anticipates further earnings growth in FY26.

The company is set to incrementally increase dividends in FY26. Although not a rapid dividend growth story, APA's allure lies in its consistency. Currently, its distribution yield is around the mid-6% range and partially franked, supported by long-term contracts and essential infrastructure, making it a reliable choice heading into 2026.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Washington H. Soul Pattinson offers a unique income proposition. Unlike typical industrials or utilities, the company invests in a diverse portfolio spanning listed equities, private enterprises, property, credit, and emerging ventures, aiming for long-term value compounding.

Following its merger with Brickworks, Soul Patts' stock price decline has pushed its fully franked dividend yield into the high 2% range. Despite appearing modest, the company has consistently raised its dividend annually since 2000, a remarkable achievement.

Recent updates reveal growing contributions from established holdings and emerging private investments in various industries like education and financial services, focusing on long-term growth.

For long-term investors, Soul Patts stands out with its conservative balance sheet, prudent capital allocation track record, and dependable dividends over time.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

For those seeking diversification this holiday season, the Vanguard Australian Shares High Yield ETF provides an easy way to spread income risk across numerous large dividend-paying companies.

This ETF targets companies forecasted to offer higher dividends than the market average while maintaining diversification across sectors. It encompasses banks, energy companies, infrastructure, and defensive industrials, many with a robust dividend history.

Since 2022, VHY has achieved strong total returns and presently provides a high single-digit yield, with franking levels that fluctuate quarterly. While distribution volatility may occur, long-term investors have benefited from growing payouts.

For those who prefer a straightforward approach to income investing, VHY offers one of the simplest routes to creating a diversified portfolio of ASX dividend stocks.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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