The best ASX dividend shares are a fine balance between a good yield and robust growth potential.
After all, there is no point going for the highest yielding ASX stock out there if its share price is due to correct.
Here are three strong ASX dividend shares, each with a yield of over 5% and with great growth potential over the next 12 months.
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AGL Energy Ltd (ASX: AGL)
AGL Energy shares jumped 20% higher in February after the company's revised FY26 guidance figures excited investors. The energy company said it expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. It also expects an underlying profit of $580 million to $680 million.
Most excitingly, the board also elected to increase its fully-franked interim dividend to 24 cents per share, up 4.3% from 23 cents last year. At the time of writing, that translates to a dividend of around 5.1%.
AGL is expected to grow its annual dividend even further, too. For FY26, UBS expects AGL to make an annual payout of 49 cents per share. It expects to pay 54 cents per share in FY27.
Analysts tip an upside as high as 40% for AGL shares too, to $13.25 over the next 12 months.
Rural Funds Group (ASX: RFF)
Rural Funds Group is a real estate investment trust (REIT) that is focused on agricultural assets ranging from cattle to almonds. The company has high exposure to essential food production and agricultural supply chains and is expected to benefit from long-term demand.
The ASX dividend stock has paid a quarterly unfranked dividend to investors since 2016. Investors will be paid 2.9 cents per share next month. This implies a yield of around 5.5% at the time of writing.
Bell Potter forecasts the company will pay dividends per share of 11.7 cents in FY 2026 and FY 2027.
Analysts tip an upside as high as 24% to $2.50 per share over the next 12 months, at the time of writing.
Dexus Industria REIT (ASX: DXI)
Dexus Industria REIT has a portfolio of workplace-focused properties comprising more than 90 assets. The listed Australian real estate investment trust (LIT) is primarily invested in industrial warehouses. It plans to provide resilient income growth and long-term risk-adjusted returns to investors. It benefits from a diversified tenant base, high occupancy, and stable rental income.
The company has paid a quarterly unfranked or partially franked dividend since 2017. Its investors will be paid an unfranked quarterly dividend of 4.1 cents in May, implying a yield of around 6.9%.
The company is forecast to pay dividends per share of 16.6 cents in FY26 and then 16.8 cents in FY27.
Analysts tip an upside as high as 43% over the next 12 months, to $3.40 per share, at the time of writing.
