Top 5 ASX dividend shares to watch in October 2025

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

From Evolution Mining’s humble 1.95% dividend yield to GQG Partners’ solid 13.49%, these five shares offer dividend income, backed by solid fundamentals.

Our selection criteria

• Dividend cover ratios above 1.5x for sustainability
• Spread across two of Australia’s strongest sectors to reduce risk
• Recent financial performance supporting dividend payments
• Market capitalisations from A$1.38 billion to A$33.04 billion

Overview of the stocks in this article

Each of the stocks in this article can be share traded, and all except for MA Financial Group can be traded via CFDs with IG Australia.

1. Hydromet Corp Limited (ASX: HMC)

Industry: Finance

Market cap: A$1.38 billion¹

Dividend yield: 4.36%²

Dividend cover ratio: ~1.67x

HMC is an investment manager that looks after billions of dollars in assets. Instead of running just one type of business, it spreads its focus across different areas, including real estate, private credit (lending to businesses), private equity (investing in companies) and digital infrastructure, such as data centres.

The company has grown quickly in recent years, setting ambitious goals to keep expanding. One of its big moves was buying into a large data centre business, giving it exposure to fast-growing trends like cloud computing and AI.

By moving more towards a ‘funds management’ model, HMC earns ongoing fees from managing investors’ money, which can make its earnings more stable over time.

Highlights:

• HMC is branching out into several areas, which could stretch its focus and potentially affect growth
• Its most recent dividend payout was A$0.06,[3] with many share traders being hopeful that the company will continue to grow and increase dividends in the future
• While its share price hasn’t performed well in recent months, its dividend cover ratio remains sustainable, although not so much that it doesn’t need close monitoring

2. GQG Partners (ASX: GQG)

Industry: Finance

Market cap: A$4.98 billion⁴

Dividend yield: 13.49%⁵

Dividend cover ratio: ~1.82x

What makes GQG Partners stand out is its focus on active management. Instead of simply tracking an index like the S&P 500, its investment teams focus heavily on quality businesses with solid earnings and growth potential, while also keeping risk in check.

The firm’s funds are invested across markets such as the US, emerging economies and global equities, giving it wide diversification.

For share traders, GQG is appealing because it generates recurring income from management fees. The more money clients invest with GQG, the more the company earns. That steady inflow of fees supports its ability to pay dividends.

Since listing, it has developed a reputation for strong dividend payouts, supported by high levels of profitability and cash flow.

Highlights:

• If global share markets fall or if clients withdraw money, GQG’s earnings could take a hit
• Its latest interim dividend payout was A$0.055⁶ on 26 September 2025

3. Northern Star Resources Limited (ASX: NST)

Industry: Mining

Market cap: A$33.04 billion⁷

Dividend yield: 2.38%⁸

Dividend cover ratio: ~1.87x

Northern Star is one of Australia’s largest gold mining companies. It operates several big mines in Western Australia, along with projects overseas.

Its main business is straightforward: digging gold out of the ground, selling it and using the profits to invest in more mining or return money to shareholders.

The company has benefited from strong gold prices, boosting both its earnings and its ability to pay dividends. It’s also been investing in new projects to secure future growth, including expanding existing mines and buying into new ones.

Shareholders have seen both dividends and share buybacks – two ways a company returns profits directly to shareholders.

Overall, Northern Star is a dividend stock worth considering for those who believe in the long-term value of gold but are also comfortable with the ups and downs of the mining industry.

Highlights:

• It’s an appealing investment because gold is often seen as a safe-haven asset. When economic conditions are uncertain, the precious metal’s demand usually rises. This means Northern Star has the potential to grow during volatile times
• Its latest dividend was a healthy A$0.30 per share – occurring on 25 September 2025⁹
• Unlike the previous two companies on our list, Northern Star’s share price has seen significant growth over the past six months – 22.75%¹⁰

4. MA Financial Group Limited (ASX: MAF)

Industry: Finance

Market cap: A$1.73 billion¹¹

Dividend yield: 2.15%¹²

Dividend cover ratio: ~4.29x

MA Financial is a diversified financial services company. It earns money in three main ways: managing investment funds, lending to individuals and businesses, and offering advisory services, like helping companies raise money or handle mergers.

The group has been expanding steadily, with more investors putting money into its funds, along with strong growth in its lending arm. These have provided a healthy base of recurring income, which supports its ability to pay dividends.

For share traders, the company’s appeal is that it isn’t tied to just one type of income. It earns fees when markets are strong, interest income from loans and fees from advisory work. This mix gives it balance, even if one part of the business slows down.

Highlights:

• Its dividends aren’t the highest on the market, but it’s been consistent with payouts and has the potential to grow them further if assets under management increase
• With an exceptional dividend cover ratio of ~4.29x and growth of 29.25% in its share price over the past six months, MA Financial Group is a company worth a very close look¹³
• It’s a financial stock with solid long-term prospects, though it’s not as defensive as some traditional dividend plays

5. Evolution Mining Limited (ASX: EVN)

Industry: Mining

Market cap: A$20.70 billion¹⁴

Dividend yield: 1.95%¹⁵

Dividend cover ratio: ~3.10x

Evolution Mining is another major player in the gold sector, but it also produces copper, giving it a bit more diversity than pure gold miners. Its operations are spread across Australia and Canada, which helps reduce reliance on a single region.

In recent years, Evolution has delivered strong results thanks to high gold and copper prices. It’s focused on improving efficiency, keeping costs under control and paying down debt. This has enabled it to increase its dividend payouts while also investing in expanding its mines.

The company positions itself as a ‘mid-tier global gold miner’, meaning it’s not as large as the very biggest players, but is still well-established and competitive.

Its strategy is to steadily grow production while maintaining strong returns for shareholders.

Highlights:

• It might not have the highest dividend yield, but as we mentioned earlier, the dividend cover ratio is the true test of sustainable dividend payouts, and Evolution Mining is performing strongly on that front with ~3.10x
• Evolution might be attractive to share traders because it benefits from two valuable commodities. Gold provides stability during uncertain economic times, while copper has strong long-term demand linked to renewable energy and electrification
• Its upcoming dividend payout is A$0.13, to be paid on 3 October 2025¹⁶
• Generally, the company is a balanced mining stock with a solid dividend history and growth potential

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 stock 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
 

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