ASX income shares are delivering an average franked dividend income of $10,537 per person, new tax data shows.
On top of that, ASX dividend investors are receiving the significant tax benefit of $4,217 worth of franking credits each year.
The data also shows that share investors receive an average of $1,285 in unfranked dividend income per year.
This recently published tax data covers the 2023 financial year (FY23).
The number of Aussies receiving franked dividend income is at a 13-year high of 3,045,331 people.
That's up 10.8% from FY22.
The data also shows 1,315,654 Aussies received unfranked dividends in FY23, up 10.1% from FY22.
This increase reflects Australians' growing interest in investing outside of the local bourse in US stocks and other international shares.
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What's going on with ASX dividends?
Betashares says the trailing cash dividend yield of the S&P/ASX 200 Index (ASX: XJO) has fallen to 3.34% per annum.
That is well below the long-run average of 4% to 4.5%.
Stalwart ASX dividend shares, such as the ASX 200 miners and banks, are not as attractive as they used to be for income investors.
This is due to weak commodity prices, which are contributing to a reduction in dividend income from BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), and Rio Tinto Ltd (ASX: RIO).
Also, rising bank share prices, in particular, Commonwealth Bank of Australia (ASX: CBA) shares, mean dividend yields are lower.
Betashares senior investment strategist, Cameron Gleeson, comments:
.. in February Rio Tinto announced its smallest dividend in seven years, after earnings fell due to both higher production costs and lower commodities prices.
Macquarie's dividends have fallen from their 2022/23 year high, while CBA's dividend growth has not kept up with its stock price, resulting in an underwhelming dividend yield of 2.73% p.a.
So, where should ASX investors look for better income in FY26?
What are the ASX income shares to buy in FY26?
Here are some ASX dividend shares outside of the miners and banks to consider buying, based on recent broker recommendations.
The brokers have buy ratings on all of these ASX income shares for FY26.
Their forecast dividend payments for FY26 are included below.
IPH Ltd (ASX: IPH)
IPH offers intellectual property services and assists businesses with securing patents and trademarks.
Macquarie is forecasting a fully franked dividend of 36.5 cents per share in FY26.
Based on the current IPH share price of $5.33, this equates to a dividend yield of 6.85%.
The broker has an outperform rating and a 12-month price target of $6.75 on this ASX income share.
Telstra Group Ltd (ASX: TLS)
Telstra is Australia's largest telecommunications provider.
Macquarie is forecasting a fully franked dividend of 19 cents per share in FY26.
The Telstra share price is currently $4.95, implying a yield of 3.84%.
The broker gives Telstra an outperform rating and price target of $5.19.
Dicker Data Ltd (ASX: DDR)
Dicker Data supplies software, hardware, cloud, and cybersecurity solutions to customers.
Morgan Stanley is forecasting a fully franked dividend of 50.8 cents in FY26.
Based on the current Dicker Data share price of $9.04, this equates to a dividend yield of 5.62%.
Morgan Stanley has an overweight rating and $10.30 price target on this ASX income share.
Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare is a global pathology and diagnostic imaging provider.
Bell Potter is forecasting a dividend of $1.09 in FY26.
Based on the current Sonic Healthcare share price of $27.88, that's a dividend yield of 3.91%.
Bell Potter has a buy rating and $33.70 price target on Sonic Healthcare stock.
Super Retail Group Ltd (ASX: SUL)
Super Retail owns several retail businesses, including Supercheap Auto, Rebel, BCF, and Macpac.
Citi is forecasting a fully franked dividend of $1.20 per share in FY26.
Based on the Super Retail share price of $15.78 at the time of writing, this is a dividend yield of 7.6%.
The broker has a buy rating and $16.50 price target on this ASX income share.
Rural Funds Group (ASX: RFF)
Rural Funds Group is a specialist agricultural real estate investment trust (REIT).
Bell Potter is forecasting a dividend of 12.2 cents in FY26.
The Rural Funds share price is currently $1.83, implying a dividend yield of 6.67%.
The broker has a buy rating and a price target of $2.45 on Rural Funds Group.
