Reporting season is a very exciting time of year because we get to see how ASX dividend stocks and other businesses have performed.
I view this time of year a bit like Christmas – we get to open the results without knowing what's inside. The dividends will be interesting to see and will be heavily influenced by how much profit the companies have been able to generate.
Hopefully, the results are solid and pleasing for shareholders in terms of both the passive income and earnings that are revealed. These are three numbers that could be very interesting.
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BHP Group Ltd (ASX: BHP)
BHP shares have surged 27% in the last six months, with investors seemingly excited about the company's increasing profit potential as commodity prices remain pleasing.
I'm curious to see how much the ASX dividend stock has been able to capitalise on these higher resource prices for iron ore and copper amid its reported discussions/dispute with China Mineral Resources Group (CMRG) – a key buyer of iron ore.
BHP is usually a rewarding dividend payer for investors, and broker UBS is expecting the business to pay an interim dividend of US 60.8 cents per share, representing a dividend payout ratio of 50% of projected net profit for the first half. However, a higher payout is possible if prices remain "favourable".
As one of the two biggest businesses on the ASX, it makes an important contribution to the Australian economy, and its dividend payouts matter for a lot of shareholders.
Commonwealth Bank of Australia (ASX: CBA)
CBA is the other titan of the ASX with a market capitalisation of around $250 billion.
The numbers that the ASX bank share reports will give investors a good barometer of the banking sector and a wider view of the economy.
CBA has the most customers, the largest loan book, and the largest branch and ATM network in Australia.
After the RBA rate hike was announced yesterday, it'll be interesting to see how the ASX dividend stock navigates that and what that could do for the bank's profitability (as measured by the net interest margin (NIM) metric). I expect it may be a slight net positive for CBA.
The dividend declared will be a reflection of recent profitability and the board's view on upcoming profitability, too.
Nick Scali Ltd (ASX: NCK)
I think Nick Scali is one of the most impressive retail businesses on the ASX, considering its high return on equity (ROE), its store network growth in Australia and New Zealand, and the initiatives it has to become a sizeable player in the UK.
As a retailer of furniture, it's exposed to household demand. I'm very curious to see how the ASX dividend stock has performed in the last six months of 2025 and its outlook for 2026, considering the solid Australian economy and the recent rate rise.
I think the dividend payout could be quite revealing of the confidence of management. It increased its payout per share every year between 2013 and 2023, but cut the dividend each year since then. Will there be a reversal of that direction towards positive dividend growth?
