The Australian share market has plenty of ASX dividend stocks for income investors to choose from.
But which ones are poised to continue increasing their dividend payments over time?
Let's take a look at two buy-rated stocks that have a good track record and are being forecast by analysts to build on this in the near term. They are as follows:
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APA Group (ASX: APA)
The first safe ASX dividend stock that analysts are positive on is APA Group.
It is an energy infrastructure company and the owner of a $27 billion portfolio of gas, electricity, solar and wind assets.
It delivers around half of the nation's domestic gas through over 15,000 kilometres of gas pipelines that it owns, operates and maintains. In addition, through its investments in electricity transmission assets, it connects Victoria with South Australia, Tasmania with Victoria, and New South Wales with Queensland. This provides vital flexibility and support for the grid.
These assets have supported consistent earnings and dividend growth for almost two decades.
The good news for income investors is that the team at Macquarie believes that this trend can continue. It is forecasting dividend increases to 58 cents per share in FY 2026 and then 59 cents per share in FY 2027. Based on the current APA share price of $8.97, this would mean dividend yields of 6.5% and 6.6%, respectively.
The broker has an outperform rating and $9.23 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend stock that has been consistently increasing its dividend at a decent rate is Telstra.
It is of course Australia's leading telecommunications company with almost 25 million mobile subscriptions across the country.
As internet and mobile phones are must-haves for most Australians, demand for them remains consistent whatever is happening in the economy. Together with its periodic price increases and cost cutting, this has underpinned solid earnings and dividend growth for a number of years.
The team at Macquarie believes that this will continue for the foreseeable future. It is forecasting fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on the current Telstra share price of $4.85, this would mean dividend yields of 4.1% and 4.3%, respectively.
Macquarie has an outperform rating and $5.04 price target on the telco giant's shares.
