Best Dividend Stocks on the ASX in 2023

ASX dividends are a big part of investor's returns and help guide which stocks to invest in.

What are the best dividend stocks for ASX investors?

Our top 5 dividend yield producing stocks are:

  1. CAPRAL (CAA): dividend yield 9.1%
    Market Capitalisation: $136M
    Share Price: $7.70

    CAPRAL CAA dividend yield 91%

  2. CENTREPOINT ALLIANCE (CAF): dividend yield 8.3%

    Market Capitalisation: $47M
    Share Price: $0.24

    CENTREPOINT ALLIANCE CAF dividend yield 83%

  3. SOUTHERN CROSS ELECTRICAL (SXE): dividend yield 8.2%

    Market Capitalisation: $175M
    Share Price: $0.67

    SOUTHERN CROSS ELECTRICAL SXE dividend yield 82%

  4. NZME (NZM): dividend yield 7.9%

    Market Capitalisation: $169M
    Share Price:$0.92

    NZME NZM dividend yield 79%

  5. ARN MEDIA (A1N): dividend yield 7.8%

    Market Capitalisation: $316M
    Share Price: $1.03

    ARN MEDIA A1N dividend yield 78%

Based on share prices at the time of writing

We would love to help you invest in quality ASX dividend stocks. Take out a trial now to gain access for 14 days and access our dividend paying Small Caps. Small Caps are known for their future performance and growth, cheap stock price, and capital growth. Plus these dividend payers give you franking credits.

Some of the stocks mentioned we report on in our Blue Chip report and are the top dividend stocks. These Australian companies include: Fortescue Metals Group Ltd, BHP Group Limited, Commonwealth Bank, Macquarie Bank, Australian, and New Zealand Banking Group. The highest dividend yield on the ASX is 14.29% from Latitude Group (LFS), Whitehaven coal pays 13.98%.

Diversifying to spread risk

Stocks that pay dividends underpin a diversified portfolio.ASX dividiend stock portfolioThese results of our past performance over 12 years show you the power of ASX dividend stocks in your portfolio.

Why is growth important?

Growth is important because you want your investment portfolio to grow. Big Companies grow but often at a much smaller rate.

For small companies, it is much easier to double, or triple their current stock price because they are so much smaller to start with.

3 Ways to find the Best ASX Stocks with Attractive Dividend Yield

You want to find the best dividend stocks to generate income? ASX dividend investors don’t just look for dividend stocks but they also look for capital growth. Many investors will go straight to ASX Blue Chip stocks for dividend income.

Investing for Growth
  • Our focus is on investing for growth. But that doesn't mean that you won't get income too. In 2008 our ASX Small Cap portfolio manager invested in the Small Cap stock TPG for below 60 cents. In 2020, he is receiving a special dividend payout between 49-52 cents per share. Top dividend stocks like ASX Small Caps can give investors dividend income plus share price growth potential. Top dividend stocks like ASX Small Caps can give investors dividend income plus share price growth potential.

Invest for the long-term

When a Small Cap stock gives dividend payments, it shows that the Small Cap is a quality investment and represents an important price signal for the stock market.

When there is increased uncertainty and the stock market comes under pressure, if the Small Cap is able to maintain and even increase dividend payouts, this augurs well for your portfolio’s ability to weather the storm.

More than 50% of the small cap stocks we cover have a dividend yield

Of the 100 small cap stocks that Under the Radar Report actively covers for our stock report, more than 50% of these small companies give a dividend yield. Dividend stocks in your investment portfolio can be a handy addition to your income or indeed for retirees form the bulk of their income.

So, to find the Best ASX Dividend Stocks do you invest in Blue Chip stocks or Small Cap stocks?

You don’t need to spend hours doing your own research tracking earnings growth of companies, going through details like their current stock price, annual dividend payout , payout ratio, dividend growth, past performance to determine their future performance. Our team of analysts have done the hard work for you, tracking company's earnings, annual dividend payouts, growth amongst many other parameters and found the best ASX dividend stocks for you to invest in. These high quality dividend stocks with high dividend yields are exactly what you need to boost your income.

The question becomes - How do you manage dividend investing? Do you invest in Blue Chip dividend yielding stocks or Small Cap stocks and the answer is both. You need small caps for growth and blue chips with a high market capitalisation for dividend yield. But diversification is very important.

Start earning dividends paid and capital growth from quality ASX dividend stocks. Login online now through taking out a free trial with us. You are given full access to all our research for 14 days.

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Small Cap dividend Stocks: Best ASX Growth stocks for dividend investors

Small Cap stocks offer investors on the ASX, strong capital growth, but many of them also pay dividends as well. There are over 2,200 small cap stocks listed on the ASX and at Under the Radar Report we hunt for small cap stocks for our small cap stock report that will boost your portfolio’s returns through growth. That’s right, we are looking not just for a dividend yield but also for share price growth.

Our team is very experienced and we have a strong record over the past eight years of delivering independent fundamental analysis on over 100 small cap stocks. Many sites are simply PR for small companies but Under the Radar Report is an established independent research house with its own AFSL.

Our analysts sole purpose is to research companies that will make money for our subscribers. They work hard to filter through all the small cap stocks on the ASX to find stocks that offer dividends and provide share price growth.

Read more for the best investing advice and learn what small caps can do for your portfolio, dividend income and wealth.

Learn more

Blue Chip Stocks: Best ASX Dividend Stocks

Under the Radar’s Blue Chip Value stock report covers over 40 of the Best ASX Dividend Stocks. Our team of analysts have hunted for the best dividend stocks for your share report. All of the 40 Blue Chip dividend stocks we cover give ASX investors dividends income. The highest dividend yield is a very healthy 9.5%. We also give clear Buy, Sell and Hold recommendations making it very clear for you to know what to do.

We advise that up to 50% of your share portfolio should be invested in a number of Blue Chip stocks not only for their dividend return but also as they can be a relatively safe investment (but all stocks can go up and down so watch them!).

Still not convinced?

What about the risks of investing in the stock market?

There are risks in investing in ASX shares, but the ASX Small Cap dividend stocks we recommend have delivered an annual cash dividend yield of up to 5% before you include franking credits, rather than a yield of 2% from a Government bond. Plus, you get capital growth potential, unlike a bond or bank deposit.

ASX Dividends Stocks in a Small Cap Portfolio

Investing in the stock market is all about building a portfolio of 7-15 ASX stocks that will give you a combination of income and growth. It is also about minimising your risk through diversification.

Diversification is powerful to even out the returns to reduce risk

The great thing about Small Caps is the variety of different sectors on offer, which is sharply contrasted by the concentration of exposure in the ASX 200 to banking and resources. For example, you don't want to invest in only two companies which operate in the same sector. Don't put all your eggs in one basket!

Should I re-invest my dividends?

If you reinvest dividends this will work to supercharge your returns over the long-term. Albert Einstein is rumoured to have said that compound interest is the eighth wonder of the world, but we doubt this. Even so, you can see its effect when you reinvest dividends.

If you invested $1000 and achieved an 8% annual return every year over forty years, made up of 3% dividends and 5% capital gain, this would have appreciated to $21,720 with re-invested dividends and $7,040 without re-investment.

Dividends aren't everything

A strong balance sheet is most important. We have invested in a number of companies (including two in media and one in contracting) that made efforts to repair their balance sheets by forgoing dividends. These companies subsequently delivered great cash flow.

If I want income, why don't I just put my money in a bank?

Try finding a term deposit that has a rate above 2.5% where your money is not locked up. You can’t get 2% from a govt bond. Even if you do, you’re taking price risk. If interest rates go up, the value of your bonds goes down.

Small Caps pay dividends too

Under the Radar Report researches over 100 Small Caps. 50% of these Small Caps pay investors dividends.

How do we work out the Price Target for the Dividend Stocks?

Our Blue Chip Value Price Target methodology, is based on two investment models that rely on each company’s investment fundamentals and consensus forecasts for earnings growth and dividend payments. They are also based on long-standing and validated valuation theory principles.

We also give you a crib sheet, covering the investment summary of over 40 Blue Chip stocks, which includes the price target, expected 12-month return (target opportunity), our Radar Rating, and comment. From valuation theory practicalities that make the Blue Chip Value Model work, it provides a great base from which to generate price targets to help you manage your Blue Chip portfolio and to find buying opportunities.

Read more about our Blue Chip ASX Stocks with dividends.

Blue Chip Dividend Stocks

Find out the return expectations for over 40 Blue Chip Stocks

We also give you Price Targets which is the price we believe the stock will be in 12-months time. This is run by a very experienced analyst Sam Ferraro. Not only can Blue Chip Value subscribers now search for our latest views on every one of the Blue Chip Shares we cover, but we have now added a valuation based Price Target for each of these ASX Dividend stocks, which enables you to gauge what our return expectations are.

Take control of your investing: A high dividend yield

Access the best ASX dividend stocks to buy that will give your portfolio growth and boost your dividend income.