The recent changes to capital gains tax (CGT) may reduce the after-tax appeal of investment returns driven by share-price growth.
This is influencing some investors to favour ASX dividend shares. That's because a greater portion of returns comes from regular income and potentially franking credits.
According to S&P research, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) is around 3.5%.
For investors looking to outperform this benchmark, here are three ASX dividend shares with yields over 6%.
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Rural Funds Group (ASX: RFF)
Rural Funds Group is a real estate investment trust (REIT) that holds and leases agricultural land and equipment.
The company manages around $2 billion of diversified farmland and assets located across several states.
Its segments include cattle, almonds, macadamias, cropping, vineyards, and other agricultural products. The majority of its revenue is derived from its cattle and almond segments.
ASX REITs can be attractive dividend stocks because they typically own income-producing property and distribute a significant portion of rental income to investors as distributions.
Their returns can therefore provide relatively predictable income. It is worth considering dividends are not guaranteed as REITs can be sensitive to interest rates, property values and debt costs.
At the time of writing, this ASX dividend stock is offering a distribution per unit of 11.73 cents in FY27, which is a yield of approximately 6%.
IPH Ltd (ASX: IPH)
IPH is a holding company, which engages in the provision of intellectual property (IP) services.
This is attractive as a dividend stock because it has a defensive, recurring business, strong cash generation, and a history of growing its dividend.
IPH is considered defensive because businesses still need to protect and maintain their patents and trademarks regardless of the economic cycle. Once a company has an IP portfolio, it generally continues paying for renewals, legal work and administration even during a recession.
So IPH's revenue is less dependent on people buying discretionary products or services, which can make its cash flows and dividends more stable than those of many other companies.
At the current share price, the recent dividends imply a very high yield of over 11%.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend stock to target for high yields is HomeCo Daily Needs.
Another ASX REIT, it is an Australian property group focused on the ownership, development, and management of Australian shopping centres.
It also offers a defensive profile, as its property focuses on everyday needs such as supermarkets, healthcare, childcare and essential services.
These tenants tend to remain in demand even when the economy weakens, which supports relatively stable rental income and distributions.
At the time of writing, it offers a yield over 7%.
