These two ASX dividend shares have a lot in common — and none of it is flashy.
Sonic Healthcare Ltd (ASX: SHL) and Metcash Ltd (ASX: MTS) both offer an attractive dividend yield, trade at prices that still leave room for upside, and operate in businesses that rarely excite the market.
It's the kind of boring reliability that income investors tend to love.
Here's why.
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Sonic Healthcare Ltd (ASX: SHL)
If you want to kick off 2026 without breaking a sweat, Sonic Healthcare might be the quiet achiever you're looking for. No hype, no heroics, just a dependable healthcare heavyweight getting back into shape.
Sonic does the dull-but-deadly stuff: pathology and diagnostic imaging. Blood tests, scans and biopsies aren't glamorous, but essential. And essential businesses tend to keep the lights on regardless of what markets are doing.
After a pandemic-fuelled sugar rush, Sonic's share price came back to earth as COVID testing revenue faded and costs crept up. Investors lost interest. That's exactly why this ASX dividend stock is worth another look. Expectations are now realistic, maybe even a little too low.
The long-term tailwinds haven't gone anywhere. Ageing populations, rising chronic disease and more preventative testing all mean one thing: more samples through Sonic's labs. You don't postpone medical tests when times get tough.
Sure, risks remain. Government funding pressure and wage inflation won't disappear overnight.
According to Bell Potter, the ASX dividend share is a good choice for passive income. The broker forecasts dividends of $1.09 per share in FY 2026 and $1.11 in FY 2027. With Sonic shares currently at $22.61, this would result in a dividend yield of 4.8% and 4.9%.
The broker has assigned a buy rating and a $33.30 price target to the ASX dividend share. Based on the share price at the time of writing, this implies a potential upside of 32% for investors over the next 12 months.
Bell Potter is on the bullish side, as the average 12-month target price is $26.73. However, that still points to 18% upside, and could bring the total gain in 2026 to well over 20%.
Metcash Ltd (ASX: MTS)
Metcash won't light up your group chat either. No, it's just a solid business quietly getting on with it.
Metcash is the engine room behind IGA supermarkets, Mitre 10, Home Timber & Hardware and a swathe of independent liquor and foodservice retailers.
The big attraction? The dividend. Metcash has built a reputation as a dependable payer, and with the share price sitting at relatively modest levels, the yield of 5.3% looks especially tempting.
Operationally, the ASX dividend share does defensive well. Groceries, hardware and booze don't go out of fashion, even when households tighten their belts. Long-standing relationships with independent retailers create sticky revenue, while diversification across business segments helps smooth out bumps.
The catch? Don't expect fireworks. Growth is steady rather than spectacular, competition is fierce and margins are always under pressure.
UBS projects the ASX dividend share to increase its payout every year between FY25 to FY29. That could be great news for investors focused on passive income.
Early December, the company highlighted that its latest dividend will be worth 8.5 cents per share. It will come fully franked, as the payouts from Metcash tend to do.
Most analysts also predict moderate to strong upside. The average 12-months price target has been set at $3.93, which suggests a share price gain of 19%. That could lift total Metcash earnings, including dividends, close to the 25% mark.
