3 ASX dividend stocks to brighten your Christmas stocking

Three income-friendly ideas that could add stability, yield, and long-term value to any dividend-focused portfolio.

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Santa at the beach gives a big thumbs up, indicating positive sentiment for the year ahead for ASX share prices

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Key points

  • Essential infrastructure, long-term compounding, and diversified high-yield exposure highlight three standout ASX dividend opportunities.
  • Income-focused investors may find dependable cash flows and steady distribution growth across these quality ASX dividend stocks.
  • The three companies have consistently delivered profits as dividends and can be more reassuring than chasing high-gloss growth stories still untested long term.

With Christmas only a few weeks away, some Australians are turning their attention to gifts, holidays, and long lunches. Others are quietly eyeing the share market, looking for ASX dividend stocks that might deliver a little extra cheer well into the new year.

If you're in the latter camp, three income-friendly ideas stand out thanks to resilient business models, improving outlooks, and ongoing commitments to shareholder returns.

APA Group (ASX: APA)

Energy infrastructure giant APA Group has spent the past two decades expanding and operating one of Australia's most critical gas pipeline networks. Its steady, regulated-style earnings profile has long made it a favourite among dividend seekers, and FY25 results reinforced why.

APA delivered underlying operating earnings (EBITDA) growth of just over 6%, supported by modest margin expansion and strong underlying demand for gas transport. The company is also guiding for further earnings growth in FY26 as it progresses key expansion projects, including upgrades to the East Coast Gas Grid.

Dividends continue to edge higher, with management planning a small uplift in FY26. While not the fastest dividend growth story on the market, APA's appeal lies in consistency. The current distribution yield sits around the mid-6% range, partially franked, and the company appears well-positioned to continue generating dependable cash flows backed by long-term contracts and essential infrastructure.

For investors who prioritise stability, APA remains one of the sturdier ASX dividend stocks heading into 2026.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Investment house Washington H. Soul Pattinson brings a different flavour of income altogether. Unlike traditional industrials or utilities, Soul Patts invests its capital across listed equities, private businesses, property, credit, and emerging ventures. The result is a diversified, long-term focused portfolio with a remarkable record of compounding value over decades.

The share price has pulled back since its merger with Brickworks, bringing its fully franked dividend yield up towards the high 2% range. That may seem modest at first glance, yet Soul Patts has increased its dividend every year since 2000 — a feat few ASX companies can match.

Recent updates have highlighted growing contributions from both established holdings and a pipeline of smaller private investments spanning multiple industries. Several of these early-stage businesses — from education services to financial advice — are being nurtured with an eye toward long-term growth.

For patient investors, Soul Patts continues to offer something rare: a conservative balance sheet, a long track record of prudent capital allocation, and dividends that have proven incredibly reliable over time.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If diversification is your Christmas wish, the Vanguard Australian Shares High Yield ETF could be a simple way to spread income risk across dozens of large, dividend-paying companies.

The ETF screens for businesses forecast to pay higher dividends relative to the broader market while applying guardrails to avoid excessive concentration in any single sector or holding. As of the latest update, the fund holds a mix of banks, energy companies, infrastructure names, and defensive industrials — many of which have long histories of paying dividends.

VHY has delivered strong total returns since 2022 and currently offers a yield in the high single digits, with franking levels that vary quarter to quarter. Distribution volatility can occur, but longer-term investors have generally been rewarded with rising payouts over time.

For investors who prefer a hands-off approach to income investing, VHY may offer one of the simplest pathways to building a diversified basket of ASX dividend stocks.

Foolish Takeaway

Whether you favour infrastructure, diversified investment houses, or broad-market ETFs, this trio shows there are still opportunities for income-focused investors as the year winds down. 

As always, a long-term mindset and a focus on quality remain the best gifts you can give your future self.

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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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