Buy BHP, Woolworths, and these ASX dividend shares

Let's see why these shares could be top picks for income investors.

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Key points

  • BHP Group stands out as a robust dividend contributor, leveraging its world-class mining operations to provide a steady income stream, especially as demand for key commodities like copper and steel is anticipated to grow.
  • Sonic Healthcare offers promising dividend growth potential as its market conditions stabilise and recent acquisitions begin to boost earnings, making it a reliable choice for income-focused investors.
  • Woolworths, with its stable earnings rooted in supermarket spend, delivers reliable dividends, appealing to those who value consistency over yield, promising a 3.2% return in FY 2026.

With interest rates edging lower and cash returns softening, investors are once again turning to the share market for dependable income.

The good news is that there are many high-quality ASX dividend shares that are trading at attractive levels right now.

Here are five ASX dividend shares worth a closer look this month.

BHP Group Ltd (ASX: BHP)

BHP remains one of Australia's most reliable dividend payers thanks to its world-class operations in iron ore, copper, and metallurgical coal. While commodity prices move in cycles, BHP's low-cost mines and strong balance sheet allow it to generate significant free cash flow even during softer periods.

With demand for copper and steel expected to rise over the coming decade, driven by electrification, renewables, and infrastructure investment, BHP looks well placed to continue rewarding shareholders with healthy distributions.

The market is expecting a 3.4% dividend yield from BHP's shares in FY 2026.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share that could be a buy is Sonic Healthcare. It is a global leader in pathology and diagnostic imaging, operating across Australia, Europe, and the United States.

After a tough period, the market is expecting dividends to grow steadily over the next few years as operating conditions stabilise and acquisitions contribute more meaningfully to earnings.

The consensus estimate is for a dividend yield of 4.6% in FY 2026.

Super Retail Group Ltd (ASX: SUL)

Super Retail is the owner of Supercheap Auto, Rebel, BCF, and Macpac brands. The company's strong balance sheet, loyal customer base, and ability to manage inventory have supported healthy dividend payouts for many years.

The good news is that despite cost-of-living pressures impacting the retail sector, this trend is expected to continue in the near term. The market is expecting a dividend yield of 4.5% from Super Retail's shares in FY 2026.

Transurban Group (ASX: TCL)

Transurban is one of the ASX's top income stocks. Its toll roads span Sydney, Melbourne, Brisbane, and North America, providing inflation-linked revenue streams and extremely high barriers to entry.

As traffic volumes increase and new projects come online, its cash flow is expected to rise and support increasing dividends. This is expected to underpin a 4.6% dividend yield in FY 2026.

Woolworths Group Ltd (ASX: WOW)

Woolworths isn't the highest-yielding stock on the market, but its dividends are among the most dependable. Supermarket spending remains resilient through all stages of the economic cycle, giving Woolworths a stable earnings base.

For investors prioritising reliability over high volatility, it is hard to overlook this stock. Woolworths shares are expected to provide investors with a 3.2% dividend yield in FY 2026.

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Super Retail Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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