Not all dividend stories are created equal.
Some companies pay generous yields but struggle to grow them.
Others offer modest starting yields but compound their payouts reliably over time.
The three stocks fall into the second category, and all three are forecast to increase their dividends in FY 2026.
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Commonwealth Bank of Australia
Commonwealth Bank of Australia (ASX: CBA) has rebuilt its dividend every year since the pandemic-induced cut in 2020, and FY 2026 looks set to extend that streak.
In the first half of FY 2026, CBA declared a fully-franked interim dividend of $2.35 per share, a 4.4% increase on the prior year, backed by a 5% lift in statutory net profit to $5.41 billion.
Looking ahead to the full year, CMC Invest projects that CBA could pay an annual dividend of $5.05 per share in FY 2026, representing approximately 4% year-on-year growth.
At current share prices, that implies a grossed-up dividend yield of approximately 4.5%, including the value of franking credits.
CBA's appeal as a dividend stock is not primarily about yield size.
It also appeals to its 800,000 individual shareholders due to a dominant market position and a track record of growing its payout in each of the past five consecutive years.
Wesfarmers
Wesfarmers Ltd (ASX: WES) is one of the most consistent dividend growers on the ASX, having lifted its annual payout in every year since divesting Coles in 2020.
In the first half of FY 2026, Wesfarmers declared a fully-franked interim dividend of $1.02 per share, up 7.4% on the prior year, funded by a 9.3% lift in underlying net profit to $1.6 billion.
Bunnings and Kmart both delivered strong first-half contributions, while the Covalent Lithium joint venture's refinery completed below cost estimates.
The latter produces high-quality lithium hydroxide, adding a new earnings stream to an already diversified business.
CMC Invest forecasts Wesfarmers to pay an annual dividend of $2.20 per share in FY 2026.
Furthermore, Wesfarmers management has stated clearly that the company seeks to grow dividends over time in line with earnings and cash flow growth, a policy that provides long-term income investors with confidence in the trajectory of the payout.
For investors seeking a reliable, growing income stream from one of Australia's most resilient retail businesses, Wesfarmers should be of particular interest.
Telstra
Telstra Group Ltd (ASX: TLS) is one of the most consistent dividend growers among Australia's large-cap stocks, having lifted its annual payout in each of the past four years.
In the first half of FY 2026, Telstra delivered a 10.5% increase in its interim dividend to 10.5 cents per share, backed by group cash EBIT growth of 14% and mobile services revenue growth of 5.6%.
Telstra's mobile division, which continues to grow revenue through a combination of price increases and customer additions, is a key reason for these numbers.
Analysts forecast Telstra's full-year FY 2026 dividend at 21 cents per share, representing a more than 10% increase on FY 2025's 19-cent payout.
In addition, Macquarie has an outperform rating on Telstra with a price target of $5.04, and UBS forecasts annual dividend increases continuing through to FY 2030, underpinned by sustained mobile earnings growth and the company's disciplined cost-reduction program.
It is worth noting that Telstra's interim dividend for FY 2026 was 90.5% franked rather than fully franked, a slight reduction from prior years that investors should factor into their after-tax yield calculations.
Foolish Takeaway
CBA, Wesfarmers, and Telstra represent three very different businesses, but all three share a common characteristic: a management team committed to growing the dividend over time and the earnings power to back that commitment up.
In a market where income is increasingly hard to find without taking on excessive risk, these three ASX dividend stocks deserve a place on every income investor's watchlist.
