The Top 10 ASX Dividend Stocks to Watch in June 2023

The Top 10 ASX Dividend Stocks to Watch in June 2023

Reading time: 11 minutes

Learning the complex path of equities investments can be difficult, and those searching for higher returns often resort to investing in stocks that offer high dividends.

At its most basic level, a dividend is an amount taken from company profits and distributed among shareholders – generally in cash or more shares.

Regular pay-outs are a reward for investors trusting their money with particular companies. However, some businesses may decide not to issue them due to insufficient resources or wanting reinvestment for further growth.

Here are some of the top ASX dividend stocks to watch in June. Note that the following ASX stocks can all be traded with FP Markets via Contracts for Differences (CFDs).

1. BHP Group Limited (BHP)

Dividend yield: 8.50%

BHP Group Limited (BHP) is an Australian-based global resources company primarily focusing on mineral extraction and processing. They supply the world with commodities such as copper, aluminium, iron ore, coal and energy products like natural gas.

With a P/E ratio of around 8.1 and an 8.50% dividend yield, investing in BHP Group Limited could provide investors with dividends that are well above the market's average. At the same time, they enjoy the potential for capital gains over time through fluctuation of the share price.

2. Rio Tinto Limited (RIO)

Dividend yield: 6.38%

Rio Tinto Limited (RIO) is one of the largest mining companies in Australia and globally.

Its diversified portfolio consists of more than 40 operations covering bauxite mines, iron ore deposits and diamond production across six continents worldwide – making them one of only two integrated producers to operate at both ends of each continent's production lines.

It pays out impressive returns, including a 6.38% dividend yield and excellent cash flow from its operating activities year to year.

3. Woodside Energy Group Ltd (WDS)

Dividend yield: 10.9%

Woodside Energy Group Ltd (WDS) is a leading energy producer in Australia and trades on the ASX. This company focuses on the exploration and production of oil and natural gas through its portfolio of equity investments, joint ventures, and production licenses in various countries:

  • China
  • Thailand
  • Germany
  • Indonesia
  • Malaysia
  • UAE
  • USA

It has a strong track record of performance in the stock market, with a 10.9% dividend yield last year, among the top performers across ASEAN markets.

The company also provides financial services related to the gifting process and offers REITs that might benefit investors looking to invest in real estate-related stocks or products.

4.  Australian Finance Group Ltd (AFG)

Dividend yield: 9.15%

Australian Finance Group Ltd (AFG) is a diversified financial group listed on NASDAQ providing financial services primarily throughout the Asia Pacific region, including Australia, New Zealand and Singapore.

Its main products include online trading services, wealth management, retirement planning solutions, and commodity dealing services targeted at retail investors who may seek advice based on their risk appetite. The group delivered a strong performance last year and currently offers an annual dividend payout of 9.15%.

AFG prides itself on offering cutting-edge products to sophisticated investors looking to gain thorough insights into where, when and what to invest from their financial experts.

5. Whitehaven Coal Ltd (WHC)

Dividend yield: 11.61%

Whitehaven Coal Ltd (WHC) is an Australian coal company that operates several open-cut and underground coal mines in New South Wales and Queensland.

WHC pays a high dividend yield, providing investors with income and potential returns on invested capital.

Moreover, WHC’s financial situation has remained strong despite the COVID-19 pandemic leading to its stock price increase by nearly 20% in 2022, making it one of the best dividend stocks for Aussie investors seeking passive income investments during this difficult period.

6. Telstra Corporation Limited (TLS)

Dividend yield: 3.70%

Telstra Corporation Limited (TLS) is one of the largest telecommunications companies in Australia, offering wireless phone services, broadband internet access, various mobile data products and other IT/digital solutions.

With over five million subscribers for its mobile phone services across Australia, TLS is one of the nation’s most reliable service providers commanding large economies of scale that help maintain attractive profit margins while providing competitively priced product offerings compared to smaller operators within the industry.

TLS also boasts a significant blue-chip presence within the ASX, with a market cap of A$52.7 billion and a dividend yield hovering around 3.70%.

This telco behemoth is one of the better dividend-paying stocks for investors looking for consistent income generation amid an ever-changing financial landscape.

7. Macquarie Group Limited (MQG)

Dividend yield: 4.39%

Macquarie Group Limited (MQG) is a diversified financial services provider focusing on:

  • Asset management
  • Advisory & finance operations
  • Mortgages
  • Banking & cash management

They also develop more specialised products such as insurance and investments to serve diverse clients across both corporates and individual investors in Australia, Asia and the Americas.

MQG has a market cap of A$129.6 billion, making it one of the biggest financial product operators in the country, offering a consistent dividend yield for its investors at 4.39%.

With a conservative approach to risk management and steady growth potential expanding more so during pandemic times with its economy firmly intact, Macquarie Group Limited is among some of the best dividend stocks available in the Australian stock market today.

8. GR Engineering Services Ltd (GNG)

Dividend yield: 9.55%

GR Engineering Services Ltd (GNG) is a mining services company based in Australia that provides specialised engineering, construction and operations services across the mineral processing and associated industries.

Its experienced team have an exemplary track record of providing innovative solutions with tailored approaches to project management, safety management and cost control.

Additionally, GNG boasts one of the highest dividend yields in its sector, making it an attractive choice for investors looking to diversify their portfolios or start building a portfolio with passive income during economic downturns.

Plus, GNG’s focus on free cash flow has bolstered the company's dividend policy by ensuring consistent payouts over the years.

9. Cromwell Property Group Ltd (CMW)

Dividend yield: 10.09%

Cromwell Property Group Ltd is one of Australia’s largest listed real estate investment trusts focused on retail property investments in Australia and New Zealand.

With a portfolio covering almost $8 billion worth of assets with exposure to all major capital cities around the globe, CMW offers outstanding diversification prospects for investors – backed up by a market capitalisation exceeding $2 billion.

An ex-dividend date measured twice per year ensures predictability when assessing the potential return on investment, which appears likely to be 24x larger than the initial investment as CMW currently yields a significant dividend of over 10%.

10. New Hope Corp Ltd (NHC)

Dividend yield: 4.97%

NHC is an international player in the resources and energy industry. Boasting strong fundamentals, NHC’s balance sheet comprises almost $3 billion in total assets, with exploration expenditure potentially offering investors upside reward potential.

This financial strength provides a secure platform from which they can pay sustainable dividends based on their free cash flow. Hefty payouts are regular (twice annually), offering attractive diversification opportunities for long-term fans or those seeking passive income through sound financial advice regarding short-term investment strategies.

Thanks to its ex-dividend date falling close to the end of the fiscal year, it offers good timing while boasting one of the highest dividend yields currently available from any publicly listed Australian company at 4.97%.

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Source - database | Page ID - 35093

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