Over the past year or two, the S&P/ASX 200 Index (ASX: XJO) has enjoyed a significant rally. The ASX 200 has lifted from under 7,000 points in late 2023 to the all-time record high of 9,115.2 points that we saw last year. At today's pricing, the index is sitting at 8,932 points at the time of writing, up more than 30% from that 2023 low. This push higher has obviously been good news for many ASX investors. However, it has also had the less-welcome side effect of reducing the yields that many popular ASX 200 dividend shares trade on.
What was a common yield in 2022 or 2023 now looks like a missed opportunity in 2026.
But although yields are down across the board, there are still opportunities to buy ASX dividend shares today and secure a decent stream of passive income. So today, let's go over five ASX dividend shares that look set to pay a dividend yield of around 4%, provided they keep their 2026 payouts at at least 2025's levels, of course.
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Five ASX dividend shares that could pay a 4% yield in 2026
First up is Telstra Group Ltd (ASX: TLS). This telecommunications provider has long been known as one of the dividend income heavyweights of the ASX. Telstra has done a commendable job of raising its dividends like clockwork in recent years. The 19 cents per share in fully franked dividends that the company forked out last year gives Telstra a trailing dividend yield of 3.94% at current pricing.
It will come as no surprise to income investors that our next stock is an ASX 200 bank. ANZ Group Holdings Ltd (ASX: ANZ), like its major bank peers, has a long and respectable track record of providing its investors with fat dividends. This ASX dividend share has had a heck of a run, up almost 60% since mid-2023. That has reduced its dividend yield substantially. But even so, the $1.66 in dividends per share (albeit partially franked) that this bank paid out in 2025 gives ANZ a trailing dividend yield of 4.56% today.
It's a similar story with NAB's ASX banking stablemate Westpac Banking Corp (ASX: WBC). Like NAB, Westpac shares have enjoyed a solid run over the past few years, almost doubling in value since mid-2023 with its 91% gain. In 2025, Westpac funded two fully franked dividends, worth 76 and 77 cents per share respectively. These give this ASX dividend share a dividend yield of 3.94% today.
Last but not least…
Turning away from the banking sector now, it's time to check out Transurban Group (ASX: TCL). Transurban is famous (or perhaps infamous) for owning the vast majority of tolled arterial roads across Australia, most notably in Sydney and Melbourne. These toll roads give Transurban a steady stream of cash flow, which the company uses to fund a robust and reliable dividend. 2025 was the fourth year in a row that investors enjoyed a dividend increase, with the company paying out 32 cents per share in February and 33 cents in August. These give the company a trailing yield of 4.86% today (although that doesn't come fully franked).
Finally, let's get back to another telco with TPG Telecom Ltd (ASX: TPG). TPG is smaller than Telstra, although arguably more agile. But like its larger rival, this ASX dividend share has become a reliable income payer. TPG has funded two dividends per year for the past few years, which have all come in at 9 cents per share (and fully franked) since 2022. Even if we disregard the additional capital return from last year, these dividends give TPG shares a hefty dividend yield of 4.66% today.
