Top 5 ASX dividend shares to watch in March 2026

How ASX dividend shares work (and what to look for)

ASX dividend stocks are shares in Australian companies that pay part of their profits back to shareholders as cash or additional shares. For many traders, they’re a way to earn regular income without selling their investments.

When you’re picking dividend stocks, there are three key things to check:

• Dividend yield – This is the annual dividend amount divided by the share price. For example, if a $10 stock pays $0.50 in dividends each year, its yield is 5%. Higher yields can look tempting, but they’re not always better
• Dividend cover ratio – This shows how many times a company’s profit can pay for its dividend. A cover ratio of around 1.5x or higher is generally seen as sustainable.  Anything much lower means the company might be stretching to afford its payouts
• Company health – Even if the yield and cover ratio look good, check that the business has steady earnings, manageable debt and a track record of paying dividends consistently

If you keep these three points in mind, you can filter out weaker candidates before you invest.

Avoiding dividend traps

A ‘dividend trap’ happens when a stock’s yield looks unusually high because the share price has dropped, often due to problems in the business. New investors sometimes buy in for the income, only to see the dividend cut and the share price fall further.

To reduce the risk of falling into a trap:

• Check the trend in profits – If earnings are falling year after year, the dividend may be at risk
• Watch the debt levels – Companies with high debt may struggle to keep paying dividends during tough times
• Look at payout history – A long history of stable or growing dividends is a good sign; frequent cuts are a warning flag

In short: a high yield on paper doesn’t mean it’s a safe income stream. A balanced approach that combines reliable dividend payers with some higher-yield opportunities can help smooth out risk.

Top 5 ASX dividend shares to watch in March 2026

From Servcorp’s 3.71% dividend yield to IVE Group’s respectable 6.14%, these five shares offer dividend income, backed by solid fundamentals.

Our selection criteria

• Dividend cover ratios above 1.5x for sustainability
• Spread across a number of Australia’s strongest sectors to reduce risk, including metal fabrication, commercial services, real estate and electronics
• Recent financial performance supporting dividend payments – including growing share price values over the past six months in all cases, albeit some quite moderately
• Market capitalisations from A$186.60 million to A$1.86 billion

Overview of the shares in this article

Each of the stocks in this article can be share traded and CFD traded with IG Australia.

All figures are accurate as of 26 February 2026.

1. Korvest Limited (ASX: KOV)
 

Industry: Metal fabrication

Market cap: A$186.60 million¹

Dividend yield: 4.12%²

Dividend cover ratio: ~2.75x

Korvest makes and distributes industrial equipment and technology solutions. You can find its products in warehouses, factories and transport operations across Australia.

The business works with the likes of automated storage systems, lasers and robotics that help other companies move goods faster and more efficiently.

Some of its income comes from long-term contracts to maintain the systems it installs. That helps give the business some predictability, making it more appealing to share traders.

Over the past six months, the share price has seen some ups and downs as markets have reacted to changes in business investment trends. It hasn’t been smooth, but it’s shown resilience with periods of recovery after dips.

Highlights:

• For a share trader thinking about dividend shares, Korvest is interesting because it operates in the industrial tech space, where demand doesn’t vanish overnight
• The mix of equipment sales and service contracts gives the company different streams of income
• Its share price has increased by 17.57% over the past six months³

2. Smartgroup Corporation (ASX: SIQ)
 

Industry: Commercial services

Market cap: A$1.13 billion⁴

Dividend yield: 4.76%⁵

Dividend cover ratio: ~1.63x

Smartgroup is a business services company that provides outsourced salary packaging, fleet management and related administrative services to organisations around Australia.

Its role is largely operational and service‑oriented: it manages complex administrative tasks for employers and employees, particularly in areas like salary packaging and novated leases.

The company’s revenue model is built on contracts with corporate and government clients, generating recurring fee income as it administers salary benefits and vehicle leasing arrangements. Because these services are often essential and long‑term in nature, Smartgroup’s earnings tend to be relatively stable and predictable.

The company has also benefited from broader industry trends, for example, increased adoption of novated (a legal process where a new contract replaces an old one) leasing and evolving employee benefits frameworks – which can support steady growth in its client base.

Highlights:

• In the last six months, the broader market trends and shifts in investor sentiment about financial and service businesses have affected the share price
• There have been periods since October 2025 where the share price has fluctuated with changes in economic outlook and company earnings reports
• The company’s share price has grown by a steady 6.17% over the past six months⁶

3. IVE Group Limited (ASX: IGL)

Industry: Commercial printing/forms

Market cap: A$450.51 million⁸

Dividend yield: 6.14%[2]

Dividend cover ratio: ~2.22x

IVE Group is a creative services company that operates across printing, design, packaging and marketing solutions. Its business helps brands communicate with customers through physical and digital media, including labels, signage, custom packaging and related services.

Think of IVE as a partner for companies that need their products and brand messages to stand out on shelves or in campaigns.

Some of its work is project-based, where a client pays for specific tasks like a packaging redesign. Other work comes from repeat clients with ongoing needs for printing and branding services. This mix of one-off jobs and longer-term relationships provides multiple income sources for the business.

Over the last six months, the share price has seen substantial volatility, as market conditions and earnings expectations shifted. It hasn’t shown a straight-line trend, instead reacting to news flow and broader sentiment in the industrial services sector.

For share traders watching the company, it’s been a story of fluctuation rather than runaway growth or sharp decline.

Highlights:

• As companies continue to package and promote products there’s ongoing demand for the services the business offers
• It’s seen a modest 3.90% share price increase over the past six months⁹

4. Dicker Data Limited (ASX: DDR)
 

Industry: Electronics/appliance stores

Market cap: A$1.86 billion¹⁰

Dividend yield: 4.28%¹¹

Dividend cover ratio: ~2.60x

Dicker Data is a technology distributor that connects manufacturers with resellers and businesses. It doesn’t usually sell direct to everyday consumers, instead acting as a middleman – managing the flow of hardware, software and tech solutions from producers to the companies that install them.

The company makes money by earning margins on the technology products it distributes. Because it moves a large volume of goods and works with many suppliers and resellers, it benefits from scale. Some agreements give it stable terms with suppliers and predictable sales patterns over time.

In the past six months, the share price has moved with broader trends in tech spending and distribution. There have been periods of growth when demand for tech tools has been strong and slower phases when markets took a breather or adjusted expectations.

Highlights:

• For dividend share traders, Dicker Data might be attractive because its business sits inside the ongoing demand for technology equipment and solutions
• Its share price grew by 18.07% over the past six months¹²

5. Servcorp Limited (ASX: SRV)
 

Industry: Real estate development

Market cap: A$752.53 million¹³

Dividend yield: 3.71%¹⁴

Dividend cover ratio: ~2.80x

Servcorp offers premium serviced offices, virtual offices and coworking spaces around the world. It lets businesses rent flexible workspaces without the hassle of long-term leases. Clients get access to furnished offices, meeting rooms, reception services and business support technology on a pay-as-you-need basis.

The company leases prime office space, then sublets it to clients at a markup. It also earns from value added services like virtual office packages, where companies use Servcorp’s address, phone answering and admin support. This business model benefits from ongoing demand for flexible workspace and recurring revenue from subscriptions and rentals.

The share price story over the past six months shows a fairly rocky trajectory, but, overall, it’s up considerably.

There have been fluctuations as share traders weigh the outlook for office usage and rental demand. While remote and hybrid work trends have created questions for office providers, Servcorp’s flexible model has helped it adapt and find clients looking for alternatives to traditional leases.

Highlights:

• Servcorp might appeal to dividend share traders because it operates in a niche that blends property services with recurring revenue
• Its cash flows can come from long-term tenants and shorter-term users alike, which spreads risk
• It’s seen a solid 12.45% rise in its share price over the past six months¹⁵

How to trade ASX dividend shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX dividend shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX dividend shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about dividend shares 

Footnotes

1. TradingView, February 2026
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