For Australians relying on superannuation to fund their retirement, investing in ASX dividend stocks can be a great way to add passive income.
Following earnings season, many companies have updated their dividend payments, making it an ideal time for investors to consider their options.
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Dividend investing alongside superannuation
Dividend investing alongside superannuation can provide retirees with an additional source of income and greater flexibility when managing their portfolios.
While superannuation remains a cornerstone of retirement planning, a carefully selected basket of dividend-paying ASX shares may help generate regular cash flow while also offering the potential for long-term capital growth.
With that in mind, here are three stellar dividend stocks investors may want to consider for income and diversification outside their superannuation.
Harvey Norman Holdings Ltd (ASX: HVN)
Harvey Norman is an attractive dividend stock right now thanks to its relatively high, fully franked dividend yield.
It also has a solid history of shareholder distributions, and a reasonable payout ratio supported by earnings.
It is expected to pay a yield of over 6% in FY27, well above the ASX 200 average.
Right now, the consumer discretionary stock is also looking undervalued, meaning that investors could also enjoy strong capital gains in the next year.
Bell Potter recently placed $5 price target on this ASX dividend stock, indicating 15% upside from current levels.
APA Group (ASX: APA)
Another strong option to supplement superannuation is APA Group.
APA Group is a leading Australian energy infrastructure company that owns and operates a large portfolio of gas pipelines, electricity transmission, renewable energy and power-generation assets, making it an important part of Australia's energy system.
Its essential infrastructure generates relatively stable, long-term cash flows and gives the company opportunities to benefit from Australia's growing energy needs and transition to a lower-carbon energy system.
Right now, it is offering a FY 2027 dividend yield of approximately 5.4%.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store is another great option this month amongst ASX dividend stocks.
The Universal Store company has multiple businesses under its umbrella – Universal Store, Perfect Stranger, and CTC (with the THRILLS and Worship brands). It sells youth casual fashion apparel.
Based on the previous annual dividend payout of 43 cents per share, the company has a trailing grossed-up dividend yield of over 7%, including franking credits.
It is also another candidate for strong capital appreciation.
Its share price closed trading last week at $7.72, however Bell Potter recently placed a $9.70 price target on the company.
This indicates a healthy upside potential of 25%.
