Fully Franked ASX Dividend Stocks: AGL, Harvey Norman, Fortescue and Metcash Compared

An energy retailer, a furniture and electronics chain, an iron ore miner and a grocery wholesaler — AGL Energy Limited (ASX:AGL), Harvey Norman Holdings Limited (ASX:HVN), Fortescue Ltd (ASX:FMG) and Metcash Limited (ASX:MTS) — have little in common on the surface., an iron ore miner and a grocery wholesaler have little in common on the surface. Yet AGL Energy Limited (ASX:AGL), Harvey Norman Holdings Limited (ASX:HVN), Fortescue Ltd (ASX:FMG) and Metcash Limited (ASX:MTS) share one feature that matters to many Australian income investors: each paid fully franked dividends for its latest financial year. They are the only ordinary companies in our list of ten ASX 200 names with indicative yields above 5% in 2026; the other six are real estate Investment trusts, which pay unfranked distributions. This comparison looks at how the four set their dividends and what has changed. Indicative yields are our calculation, using each company's latest full-year dividend and its share price after the close on Wednesday 23 September 2026. They exclude franking credits and move whenever the share price does.

Source note: dividend and distribution amounts are the latest confirmed full-year payouts from official ASX company announcements. Reference prices are from an S&P/ASX 200 component snapshot after the close on 23 September 2026. Indicative Yield = annual payout ÷ reference price (our calculation, not an ASX-published figure); cash yields exclude franking credits.

What does "fully franked" actually mean?

When an Australian company pays tax on its profits and then distributes those profits as dividends, it can attach franking credits that reflect the company tax already paid. A fully Franked Dividend carries credits for the full amount of that tax. For eligible Australian investors, those credits can reduce the tax payable on the dividend, and in some cases may be refunded, although the outcome depends heavily on individual circumstances such as tax rate and holding period.

First, the yields in the table are cash yields: franking credits are not added to them. Second, franking can make two identical cash yields worth different amounts to different investors, which is one reason headline yields are an incomplete guide.

Why are franked dividend yields attracting attention?

Reporting season delivered a fresh set of confirmed payouts across the ASX, and franked income has long appealed to many Australian investors because of how credits interact with the tax system. The four names here also offer a different kind of exposure from property trusts, drawing their income from mining, energy, retail and wholesale rather than rent.

How do AGL, Harvey Norman, Fortescue and Metcash compare?

AGL Energy Limited (ASX:AGL)

AGL, an electricity and gas retailer and generator in transition away from coal-fired generation, paid 50c per share fully franked for FY2026, including a final dividend of 26c. That gives an indicative Dividend Yield of 6.09%, the lowest of the four. Its policy is to pay 50–75% of underlying net profit after tax (NPAT); FY2026's Payout Ratio was 53.3% on underlying NPAT of $631m, down 2%. FY2027 guidance is for underlying NPAT of $470m–$670m with a target payout ratio of 55–60%, with dividends expected to be fully franked. The low end of that range sits below FY2026's profit, so the next dividend depends on where Earnings land.

Harvey Norman Holdings Limited (ASX:HVN)

Harvey Norman lifted its FY2026 dividends to 27.5c per share fully franked, made up of a 14.5c interim and a 13.0c final, up from 26.5c in FY2025. That produces the highest indicative yield of the four at 6.58%. Reported profit after tax and minority interests rose 2.0% to $528.46m. The Business combines franchising operations in Australia, where Franchisee sales reached $6.584bn across 195 complexes, with a large property portfolio and company-operated overseas retail. The final dividend has a Record Date of 7 October 2026 and is payable on 12 November 2026.

Fortescue Ltd (ASX:FMG)

Fortescue pays the largest Cash Dividend per share in this group, A$1.08 fully franked for FY2026 (an A$0.62 interim plus an A$0.46 final), slightly below FY2025's A$1.10. At the reference price that is an indicative yield of 6.41%. Its policy is to pay 50–80% of full-year underlying NPAT, and the FY2026 payout was 65% of underlying NPAT of US$3.5bn, up 3%. The year included record shipments of 201.3 million tonnes, free Cash Flow of US$3.2bn and net Debt of US$0.9bn. Because Fortescue reports in US dollars and pays dividends in Australian dollars, exchange rates also affect what shareholders receive. The final dividend is due to be paid on 29 September 2026.

Metcash Limited (ASX:MTS)

Metcash, a wholesale distributor across food and grocery (including supplying IGA supermarkets), liquor and hardware, paid 18.0c per share fully franked for the year to 30 April 2026, comprising an 8.5c interim and a 9.5c final. The indicative yield is 6.34%. Metcash targets a payout ratio of about 74% of Underlying Profit after tax and paid 73.6% of underlying NPAT of $268.8m. Its Dividend reinvestment plan is suspended, so the dividend is paid entirely in cash.

How sustainable are these franked payouts?

Payout ratios offer a useful lens. AGL sits near the bottom of its 50–75% range, and Fortescue near the middle of its 50–80% range, leaving some room between what they earn and what they pay. Metcash distributes close to three-quarters of profit, in line with its target, which ties the dividend closely to earnings. Harvey Norman lifted its dividend alongside a 2.0% rise in profit. Franking itself also depends on the company continuing to pay Australian tax; credits cannot be attached without it.

What risks could change future dividends?

• Commodity prices: Fortescue's dividends depend heavily on iron ore prices and Chinese steel demand.
• Earnings uncertainty: AGL's wide FY2027 profit range captures the risks of an energy transition.
• Consumer spending: Harvey Norman's franchisee sales and Metcash's customers are exposed to household budgets.
• Currency: movements between the US and Australian dollars affect Fortescue.
• Board discretion: payout ratios are policies, not commitments, and boards set each dividend.

Why a franked yield is not automatically a better one

Franking can add after-tax value for some investors, but it does not change the underlying business. A franked dividend that is cut is still a smaller dividend, and a high yield may partly reflect a share price that already accounts for risk. Fortescue's payout fell slightly despite higher profit and record shipments, a reminder that dividends track earnings cycles and board decisions rather than past yields.

What should investors monitor next?

Investors may want to monitor Fortescue's final dividend payment on 29 September 2026, Harvey Norman's record date of 7 October and payment on 12 November 2026, where AGL's FY2027 profit lands within its guidance range, Metcash's next results and any change to its reinvestment plan, and iron ore and currency movements for Fortescue.

Key Insights / Key Takeaways

All four companies deliver fully franked income, but through very different engines: energy markets, a franchise-and-property retail model, iron ore and grocery wholesale. Their franking may appeal to eligible Australian investors, depending on individual circumstances, yet the cash yields in the table remain snapshots of past payouts at one day's prices. The durability of each dividend will rest on earnings, policy and the boards that apply it.