Highlights

  • Helia Group leads the pack with a 20.36% dividend yield, supported by disciplined capital management and a 1.5x dividend cover ratio.
  • Spark New Zealand and Pepper Money provide defensive, high-yield opportunities with dividend coverage ratios of 1.8x and 58.9x, respectively.
  • Industrial, REIT, and media stocks such as Bisalloy Steel, HomeCo, and NZME offer stable income with yields ranging from 6% to 9%.

Australia’s high-yield dividend market continues to attract investors seeking stable income amid mixed macroeconomic conditions in late 2025. Inflation has eased, cash rates remain within the 3.85–4.10% range, and investors are favouring resource, infrastructure, and insurance-linked income plays for dependable yield. The following ASX-listed equities currently pay dividend yields above 6%

Helia Group (ASX:HLI)

Dividend Yield: 20.36% | Sector: Financials and Insurance

Helia, formerly known as Genworth, operates as Australia’s largest lenders’ mortgage insurer. Its dividend yield of 16.6% positions it as one of the highest-paying financial stocks on the ASX. The company’s financial health has improved through disciplined capital management and moderating claim costs, aided by stabilising property markets across Sydney and Melbourne.

Helia's strong dividend cover ratio (1.5x) underscores a sustainable payout model. The group’s decision to initiate a 10% buyback highlights confidence in future profits. With consistent net income from lenders’ mortgage coverages and diversification into risk analytics, Helia remains a robust high-yield play.

Investment Case

The combination of high yield and prudent fiscal management offers an attractive risk-reward profile. However, investors must watch for cyclical exposures tied to housing lending cycles.

Spark New Zealand (ASX: SPK)

Dividend Yield: 10.34% | Sector: Telecommunications

Although based in New Zealand, Spark trades on the ASX and is one of the region’s strongest dividend performers. With a dividend yield of 13.6%, it is a defensive income stock offering consistent payouts and moderate earnings growth from broadband and mobile services.

Spark’s transition into digital infrastructure—particularly in cybersecurity, AI-as-a-service, and cloud migration—has insulated revenue from traditional telecom stagnation. The company maintains a dividend coverage ratio of 1.8x, reinforcing the sustainability of its high payouts.

Investment Case

Spark’s robust cash flow, low leverage, and defensive nature make it ideal for conservative income portfolios. Future growth depends on continued expansion of enterprise cloud products and 5G monetisation. With stable earnings and a fully franked payout, Spark is arguably the top telecom-based dividend stock on the ASX in 2025.

Bisalloy Steel Group (ASX: BIS)

Dividend Yield: 7% | Sector: Industrials / Defence

Bisalloy Steel Group, Australia’s only manufacturer of quenched and tempered steel, provides essential materials for the construction, mining, and defence industries. With global demand for high-strength steel on the rise and export contracts signed across Southeast Asia, Bisalloy has strengthened its revenue base.

The stock delivers an 8.9% dividend yield, supported by strong order pipelines and fiscal discipline. Its dividend cover ratio of 2.7x underlines its ability to maintain payments, even in cyclical downturns.

Investment Case

The global infrastructure boom and renewed defence spending bolster Bisalloy’s order volumes. Its earnings growth outlook into FY26 remains positive, with dividend stability aligning to net profit expansion.

NZME Ltd (ASX: NZM)

Dividend Yield: 8.7% | Sector: Media

New Zealand Media and Entertainment (NZME) delivers diversified exposure across digital, print, and radio platforms. Despite a slowing advertising market globally, NZME has managed consistent profitability through digital transformation and platform consolidation.

With a 9.2% dividend yield and a 2.3x coverage ratio, NZME stands out among media peers. Ongoing investments in its digital classifieds and property platform “OneRoof” aim to secure mid-term revenue diversification.ig

Investment Case

NZME’s sharp pivot towards digital classifieds and steady growth in audio streaming reinforce earnings stability. Although media is cyclical, NZME’s low-cost operations and predictable dividend flow present a credible case for yield-seeking investors.

Pepper Money (ASX: PPM)

Dividend Yield: 12.20% | Sector: Non-bank Finance

Pepper Money continues to deliver resilient performance despite the high-interest-rate environment. The company specialises in asset finance, mortgages, and commercial lending. In contrast to major banks, Pepper’s agile funding allows greater yield advantage and flexibility.

The current dividend yield of 7.3% with a remarkably high cover ratio of 58.9x reflects disciplined payout policy against growing earnings. Growth in NIM (net interest margin) and effective arrears management sustain confidence among income investors.ig

Investment Case

Pepper combines income stability with growth potential. Loan diversification, coupled with operational prudence, provides downside protection.

Tower Ltd (ASX: TWR)

Dividend Yield: 7.72% | Sector: Insurance

Tower Ltd, a New Zealand-based general insurer, continues to reward shareholders with solid dividend yields driven by premium growth and digital cost optimisation. Its 10.7% dividend yield, supported by a coverage ratio of 4.6x, exemplifies the firm’s strong capital adequacy and consistent underwriting profits.

The adoption of digital claims processing has cut expenses materially, raising underlying net profit margins. Tower’s steady improvement in claims ratios after severe weather events signals effective risk management and operational resilience.

Investment Case

Tower’s balance sheet strength and upgraded profit guidance suggest sustainability in dividend payouts.

GTN Ltd (ASX: GTN)

Dividend Yield: 12.63% | Sector: Media & Advertising

GTN produces commercial traffic and advertising reports for radio and television networks. Its recurring revenue model ensures dependable cash flows. The firm’s 6.9% dividend yield is underpinned by a cover ratio of 4.2x, indicative of strong free cash generation.

Recent multi-year partnerships with major commercial radio networks and entry into digital advertising boosted visibility. As advertising expenditure normalizes post-2024, GTN is positioned for steady long-run performance.

Investment Case

While small-cap in scale, GTN’s core niche supports a solid dividend framework with low cyclicality.

HomeCo Daily Needs REIT (ASX: HDN)

Dividend Yield: 6.11% | Sector: Real Estate Investment Trust

HomeCo focuses on convenience-based retail, investing in neighbourhood centres anchored by non-discretionary tenants such as Coles and Woolworths. Analysts forecast a yield near 6.2% for FY26, supported by rental escalations and high portfolio occupancy.

Its defensive retail mix underpins stable income even during economic slowdowns. As inflation-linked rental reviews persist, HDN’s payout has a built-in hedge against rising rates.

Investment Case

HomeCo exemplifies the defensive REIT class offering inflation-protected income. Its expansion into logistics-lite assets adds growth optionality, making it one of the most reliable property-linked dividend payers above 6%.

Rural Funds Group (ASX: RFF)

Dividend Yield: 6.07% | Sector: Agriculture REIT

Rural Funds Group provides agricultural leasing exposure spanning almonds, vineyards, cattle operations, and water entitlements. A yield of approximately 6.5% backed by inflation-adjusted leases makes it an ideal option for consistent farm-based passive income.fool

RFF’s rental terms ensure CPI-linked escalations, creating visibility for long-term distributions. The group’s focus on sustainable land management and diversification across critical commodity sectors underpins reliable cash generation.

Investment Case

RFF stands as the premier agricultural income trust in Australia.

Dividend Themes in Late 2025

Elevated Yields Amid Stabilising Rates

As interest rate expectations have stabilised, ASX high-yield stocks with sustainable payout cover ratios remain in favour. Historically, as yields in fixed income decline, investors gravitate to defensive equity income strategies anchored around dividend sustainability.

Sector Resilience

Financial insurers (Helia, Pepper, Tower) and property-linked REITs (HomeCo, Reef Casino, RFF) dominate dividend leadership, thanks to recurring cash flows and cost-conscious operations. Industrial and media exposures (Bisalloy, NZME, GTN) offer cyclical upside supported by operational efficiencies.

Franking Credit Advantage

Several of the above names provide fully or partially franked dividends—an important benefit for Australian resident investors seeking after-tax income maximisation.

2026 Forecast Outlook

Analyst projections anticipate moderate dividend growth across most of these issuers through FY26–FY27 as cost headwinds ease and inflation retreats to the RBA’s target band. Dividend payout ratios are expected to hold steady, reinforcing sustainability.

The median yield across this list remains approximately 8.6%, nearly double the ASX 200’s forecast average of 4% through FY26. Investors prioritising income over growth should find the above selection capable of withstanding macroeconomic variability while delivering consistent cash returns.