Top 10 ASX dividend stocks to watch in June 2025
Stocks yielding a reasonable dividend often make solid additions to the portfolio. These shares have been selected based on the highest-yielding dividend stocks with a dividend cover ratio of 1 or higher.
ASX dividend stocks: What you need to know
When buying shares, investors typically benefit in two ways: from capital gains due to an increase in share price, and from profits paid out in the form of dividends.
Dividend stock investors view a stock’s dividend yield as a key measure of a stock’s value. It offers an insight into how great the return on an investment will be. To calculate the dividend yield, investors simply divide the annual dividend paid by the share price.
To begin initial research, IG offers market screeners to filter out ASX stocks with the highest dividend yields.
Investors should then inspect an individual company’s financial status to determine the future viability of its dividend yield. At a minimum, this should include its historical profit generation, debt levels, and prior dividend history.
Amongst the screening criteria we use are:
- Dividend yield
- Cashflow
- Dividend growth over the last five years
- Market price correlation (beta) based on monthly price movements over the past five years
- Outlook for the next 12 months based on a slowing economy and interest rates peaking
How to trade or invest in ASX dividend stocks
1. Learn more about ASX dividend stocks
2. Find out how to trade or invest in ASX dividend stocks
3. Open an account
4. Place your trade
You can open a position on ASX dividend stocks with us either through share trading or CFD trading. Share trading means that you take direct ownership of the stock.1 By comparison, derivatives trading – such as CFD trading – allows you to take a position on the price movement of a company’s shares without actually taking ownership of them.
For a complete breakdown of the benefits and drawbacks of each strategy, please click here.
ASX dividend stocks: further important information to consider
Many investors add ASX dividend stocks to their portfolios for the long term. While this is a sound investment strategy, it also means that any errors are correspondingly magnified.
One key thing to note is that the below ‘top 10’ dividend stocks are not the highest yielding. These are stocks that appear to have a decent chance of continuing to pay out dividends, although there’s no guarantee of future success. Investors can often have higher success with lower-yielding shares of growing businesses rather than get caught in a yield trap.
Avoiding yield traps
A ‘yield trap’ is a stock with a high yield underpinned by poor financials. If a company issues a higher-than-normal dividend or its share price falls quickly, it can appear to be high-yielding. However, the yield is calculated using past figures that do not account for very recent performance.
Many investors are caught out by the siren’s song of ultra-high-yield percentages without considering the whole picture.
Often yielding stocks either have low growth potential because management pays out all the profit in dividends, or else they are cyclical stocks such as mining companies that can generate enormous amounts of cash and pay dividends for four years and then generate almost zero cash on the down cycle.
Accordingly, higher-yielding dividend stocks usually require more active management, while lower-yielding ones come closer to truly passive income. Similarly, compounding by reinvesting dividends can exponentially increase returns.
Diversifying to spread risk
It’s also worth noting that many ASX dividend stocks are blue chips with very low chances of the outsized capital gains that ASX growth stocks can deliver. It can make sense to have a mixed portfolio that offers potentially bigger returns in exchange for a little safety.
Finally, it’s important to consider the concentration or diversification of a company’s interests and revenue. Companies with the most resilient dividends are often the ones with diversified interests in their sector.
And investors should take care to spread their money across multiple sectors, to further reduce risk. Piling all of one’s capital into mining stocks might give a stellar return right now, but usually at the cost of a good night's sleep.
Remember, past performance is not an indicator of future returns.
Top 10 ASX dividend stocks to watch
These shares have been selected because they are the highest-yielding dividend stocks with a dividend cover ratio of 1 or above in June 2025. While they may not necessarily represent the best long-term growth investments, they have garnered significant investor interest.
Spark New Zealand (Dividend Yield: 13.6%)
Spark New Zealand is a leading telecommunications provider offering mobile, broadband, and digital services across New Zealand.
The company has steadily expanded its cloud and cybersecurity solutions for enterprise customers, while maintaining a strong consumer base.
Its recent performance was bolstered by steady growth in mobile subscriptions and a push into AI-powered digital services, helping offset softness in traditional broadband.
Investors have taken note of Spark’s robust dividend policy and relatively stable earnings, making it a compelling pick for income seekers. With a dividend yield sitting at 13.6% and a cover of 1.8, Spark offers a generous return backed by consistent cash generation, particularly appealing for those seeking a defensive play in a high-yield environment.
Currently, Spark New Zealand has a dividend yield of 13.6% with a dividend cover ratio of 1.8.
Helia (Dividend Yield: 16.6%)
Helia, formerly known as Genworth, specialises in lenders' mortgage insurance (LMI) for Australian financial institutions.
The insurer has benefited from stabilising property prices and steady loan origination volumes, which have helped support premium income.
In May, Helia announced an on-market share buyback of up to 10% over the next 12 months, signalling strong capital confidence and a commitment to returning value to shareholders.
With a dividend yield of 16.6% and a cover ratio of 1.5, Helia is an attractive option for those seeking yield exposure in the financials sector. The company’s prudently managed balance sheet and ongoing push to diversify into risk analytics services further solidify its long-term prospects.
Currently, Helia has a dividend yield of 16.6% with a dividend cover ratio of 1.5.
Tower (Dividend Yield: 10.7%)
Tower is a New Zealand-based general insurer, providing cover across home, motor, and contents.
The company has recently seen premium growth driven by pricing increases and new digital initiatives aimed at reducing claims processing costs. Tower reported a sharp improvement in underlying profit for the first half of FY25, with management highlighting improved weather-related claims experience and a strong capital position.
Offering a dividend yield of 10.7% with a cover of 4.6, Tower is standing out as a reliable payer in the insurance space.
Investors looking for a high-yield pick with improving fundamentals may find Tower’s combination of digital agility and cost control an appealing mix.
Currently, Tower has a dividend yield of 10.7% with a dividend cover ratio of 4.6.
MotorCycle Holdings (Dividend Yield: 5.9%)
MotorCycle Holdings is one of Australia’s largest motorcycle dealership networks, selling new and used bikes alongside parts, accessories and finance.
The company recently released a positive trading update showing continued growth in demand for recreational and off-road bikes. Its acquisition of Mojo Motorcycles has also helped diversify its product range and boosted margins.
At a dividend yield of 5.9% with a robust cover ratio of 6, MotorCycle Holdings presents an intriguing mix of steady income and exposure to a niche consumer market.
For those seeking diversified yield beyond the usual sectors, this two-wheeled operator brings dependable cash flows and expansion-driven upside.
Currently, MotorCycle Holdings has a dividend yield of 5.9% with a dividend cover ratio of 6.
Autosports Group (Dividend Yield: 5.3%)
Autosports Group is a premium car dealership business, representing brands like Audi, BMW and Lamborghini across Australia.
The group has enjoyed a solid post-COVID rebound as luxury car buyers return to showrooms, and has recently reported a lift in margins through improved inventory management and a greater focus on servicing revenue.
Paying a dividend yield of 5.3% and backed by a 4.1x cover ratio, Autosports offers income investors exposure to discretionary consumer spending without the volatility seen in other retail names. Its premium focus and brand partnerships have helped it carve out a resilient niche in a competitive sector.
Currently, Autosports Group has a dividend yield of 5.3% with a dividend cover ratio of 4.1.
Pepper Money (Dividend Yield: 7.3%)
Pepper Money is a non-bank lender focused on mortgages, asset finance and commercial lending.
The group continues to grow its loan book, reporting a solid first-quarter performance in 2025, with increased settlements and stable margins. Investors have also welcomed its strong arrears management and plans to diversify funding sources amid a higher-rate backdrop.
With a yield of 7.3% and an exceptional cover ratio of 58.9, Pepper Money delivers both income and capital flexibility. The stock appeals to those seeking yield in the financial sector without direct exposure to the major banks.
Currently, Pepper Money has a dividend yield of 7.3% with a dividend cover ratio of 58.9.
GTN Ltd (Dividend Yield: 6.9%)
GTN is a broadcast media company specialising in traffic and advertising reports aired across radio and television networks.
The company has benefited from a recovery in advertising spending and has recently signed multi-year renewal deals with major commercial radio partners, thereby boosting its revenue visibility. GTN has also been exploring digital advertising opportunities to complement its traditional platform.
With a dividend yield of 6.9% and a solid cover of 4.2, GTN provides a unique way to gain income from the media sector. Its resilient affiliate model and steady cash flows help underpin consistent shareholder returns, even in a shifting ad landscape.
Currently, GTN has a dividend yield of 6.9% with a dividend cover ratio of 4.2.
Bisalloy Steel Group Ltd (Dividend Yield: 8.9%)
Bisalloy Steel is Australia’s only manufacturer of quenched and tempered steel, supplying defence, mining and construction sectors.
The company recently secured new export contracts in Southeast Asia and continues to benefit from elevated infrastructure demand and a growing reputation for specialised steel products. Its consistent order book and international expansion are helping drive earnings stability.
With a dividend yield of 8.9% and a cover ratio of 2.7, Bisalloy offers industrial income with a global flavour.
Investors looking for a smaller-cap stock with real-world demand and strong balance sheet credentials may find this an underrated dividend performer.
Currently, Bisalloy Steel Group has a dividend yield of 8.9% with a dividend cover ratio of 2.7.
NZME Ltd (Dividend Yield: 9.2%)
NZME (New Zealand Media and Entertainment) operates a suite of media assets across print, radio and digital platforms.
The company has made strong strides in digital transformation, with its digital audio and classified revenue growing steadily. In May 2025, NZME reaffirmed its full-year guidance and announced further investment into its OneRoof property platform to capitalise on market recovery trends.
The company’s yield of 9.2%, supported by a cover of 2.3, stands out among media peers. For income investors seeking exposure to a diversified and evolving media group, NZME offers both solid fundamentals and generous payouts.
Currently, NZME has a dividend yield of 9.2% with a dividend cover ratio of 2.3.
Reef Casino Trust (Dividend Yield: 6.4%)
Reef Casino Trust owns the Reef Hotel Casino in Cairns, offering investors exposure to tourism and hospitality-linked earnings.
The Trust recently reported a sharp lift in revenues and profitability for the March 2025 quarter, driven by a surge in international tourism and strong domestic holiday demand. It has also flagged ongoing refurbishment works to enhance guest experience and expand gaming capacity.
At a dividend yield of 6.4% with a cover ratio of 1.4, Reef Casino Trust combines property and leisure income with steady cash distribution.
For those seeking yield in a reopening-friendly asset class, it’s a stock that offers both income and upside from tourism tailwinds.
Currently, Reef Casino Trust has a dividend yield of 6.4% with a dividend cover ratio of 1.4.
Past performance is not an indicator of future returns.
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