Australian dividend shares are a great way for investors to earn a reliable passive income. Here are two dividend giants that I think belong in every Aussie portfolio.
Image source: Getty Images
Washington H. Soul Pattinson & Co Ltd (ASX: SOL)
Soul Patts is frequently referred to as Australian dividend royalty. It's easy to see why, too.
The company has the longest streak of annual dividend increases on the index. It has also increased its dividend payout for its shareholders every year since 1998.
The best part is that Soul Patts is an investment house that holds a diverse portfolio of investments across listed equities, private equity, property, and loans. While its origins were in pharmacies, the company now has a very broad portfolio across multiple sectors.
It gives its investors exposure to assets across a range of industries, including natural resources, building materials, telecommunications, retail, agriculture, property equity, and corporate advisory. It is invested in a number of well-known ASX shares such as TPG Telecom Ltd (ASX: TPG), New Hope Corporation Ltd (ASX: NHC), and Brickworks Limited (ASX: BKW). This means the dividend share is able to generate cash flow from a variety of sources.
It's this defensive quality and consistent dividend growth that make it a fantastic option for income-seeking investors.
There's no forecast for what the Soul Patts dividend is expected to climb to in FY26, but the company expects growth to continue going forward. In FY25, the company paid a total $1.03 per share, 100% fully franked.
At the time of writing on Tuesday afternoon, the Soul Patts share price is 1.21% higher for the day at $37.51 a piece. Over the year, the shares have climbed 6.99%.
BHP Group (ASX: BHP)
Mining giant and ASX 200 heavyweight BHP is another must for any savvy investor's portfolio.
The mining and metals giant is a diversified natural resources company that is among the world's top producers of major commodities, including iron ore, copper, and metallurgical coal. The company is headquartered in Melbourne and is one of the largest and most-established companies on the ASX with a strong balance sheet and low debt, even during volatile markets.
In FY25, BHP paid an interim dividend of 79.1 cents per share on 27 March and a final dividend of 91.9 cents per share on 25 September, both fully franked. That brings the full-year passive income payout to $1.71 a share.
Unfortunately, in FY25, BHP's dividend payouts were lower than what investors received in FY24. This was mostly due to shifts in commodity prices throughout the 12-month period. But the miner continues to be a great provider of passive income.
UBS has forecast BHP will pay its shareholders US$1.09 per share in FY26, with a potential dividend yield of 5.7%, including franking credits.
But Macquarie is forecasting that the miner's dividend will be a little lower in FY26, at around US$1.05 fully franked. This is due to an expected decline in the company's EBITDA earnings for the year, reflecting softer commodity prices.
At the time of writing, BHP shares are 0.76% higher for the day at $40.93 a piece. Over the year, the shares are trading 1.82% higher.
