5 top ASX dividend shares to buy now

Let's take a look at why these shares could be top picks for income investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Accent Group might see a retail rebound with expected interest rate cuts, making it a compelling dividend pick with its solid portfolio of footwear retailers like The Athlete's Foot and Platypus.
  • APA Group offers stability with its infrastructure across Australia, providing inflation-linked income and predictable earnings from its energy assets.
  • BHP Group stands strong in dividend reliability, generating significant cash flow from its world-class commodity assets, rewarding investors through various market cycles.

For investors focused on building passive income, ASX dividend shares remain one of the most reliable ways to generate long-term cash flow.

While interest rates and market sentiment can move around from year to year, quality dividend payers tend to reward patient investors through regular income and steady capital growth.

Rather than chasing the highest yield on offer, a smarter approach is to focus on companies with durable business models, strong balance sheets, and a proven commitment to returning capital to shareholders.

With that in mind, here are five ASX dividend shares that stand out right now.

A mature-aged couple high-five each other as they celebrate a financial win and early retirement

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be a top pick for investors is Accent Group.

It owns and operates footwear focused retailers such as The Athlete's Foot, Platypus, Stylerunner, and Hype DC. It also boasts exclusive distribution rights for major global brands such as Skechers and is rolling out the Sports Direct brand across Australia.

Although consumer spending weakness has weighed heavily on its performance this year, this is now fully priced in. So, with interest rate cuts expected to boost the retail sector in 2026, this dividend share could be well-placed for a rebound in fortunes.

APA Group (ASX: APA)

Another top ASX dividend share that could be a top pick is APA Group.

It owns and operates critical energy infrastructure across Australia, including gas pipelines and electricity assets. Its long-term contracts provide predictable earnings, which flow through to steady and growing distributions. For investors seeking inflation-linked income with lower volatility, APA is an appealing option.

BHP Group Ltd (ASX: BHP)

A third ASX dividend share that could be a top option for income investors in 2026 is BHP Group.

It is one of the most dependable dividend payers on the Australian share market. Backed by world-class iron ore, copper, and metallurgical coal assets, the mining giant generates enormous cash flow across the commodity cycle. This allows the miner to continue rewarding shareholders even when commodity prices are weak.

Telstra Group Ltd (ASX: TLS)

Telstra Group could be another ASX dividend share to buy.

That's because the telco giant offers defensive income backed by essential infrastructure. Demand for mobile data, broadband, and network services continues to rise, supporting stable cash flows. Telstra's focus on cost discipline and long-term network investment underpins its ability to pay reliable dividends.

Woolworths Group Ltd (ASX: WOW)

Lastly, Woolworths Group rounds out the list.

As one of Australia's largest supermarket operators, it benefits from consistent demand for everyday essentials. This resilience allows Woolworths to deliver reliable dividends even during tougher economic conditions.

And while its performance has been underwhelming over the past couple of years, there are signs that it is now back on track and positioned for growth again.

Motley Fool contributor James Mickleboro has positions in Accent Group and Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended Accent Group and BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Retirees, check out this new $330m listed investment company which aims to pay monthly fully franked dividends

If you're looking for income, this might be just the thing.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

2 ASX dividend stocks Morgans rates as buys

Let's see what the broker is bullish on this month.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Here's how much I'd need to invest in BHP shares to generate a $100 monthly income

BHP is one of the ASX’s top dividend payers and could be a good option for income investors.

Read more »

Dividend Investing

These buy-rated ASX dividend shares offer 7% to 8% yields

Morgans is expecting some big dividend yields from these shares.

Read more »

Woman in bed rolls over to hit clock
Dividend Investing

14 ASX shares about to go ex-dividend

Stocks going ex-dividend include Flight Centre, Perenti, NRW Holdings, and Service Stream.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

Is now a good time to buy ASX dividend shares for passive income?

An easy passive income is every Australian's dream.

Read more »

Two plants grow in jars filled with coins.
Dividend Investing

You won't believe this ASX stock's dividend growth

The 4.15% yield is just the start.

Read more »