Highlights

  • Five ASX 300 companies currently offer dividend yields above 5.50%.
  • Dividend yields in the group range from approximately 5.76% to 5.99%.
  • Companies span multiple sectors including real estate, wholesale retail, automotive retail, social infrastructure, and mining engineering.

Dividend-paying shares continue to attract investors seeking income alongside market exposure. Within the S&P/ASX 300 Index, several companies currently offer dividend yields above 5.50%, spanning sectors such as real estate, retail distribution, and mining services. These businesses provide exposure to different parts of the Australian economy while delivering regular shareholder distributions. The following ASX 300 stocks—Dexus (ASX:DXS), Metcash (ASX:MTS), Arena REIT (ASX:ARF), and GR Engineering Services (ASX:GNG)—currently offer yields ranging from 5.76% to 5.99%.

DXS – Dexus

Dexus (ASX:DXS) is one of Australia’s largest integrated real estate groups, owning, managing, and developing a premium portfolio of office, industrial, and healthcare properties. The company manages over $60 billion in assets across its direct portfolio and third-party funds management platform. DXS’s ASX dividend yield of 5.99% is distributed as unfranked trust income.

Dexus’s direct portfolio includes some of Australia’s most iconic office towers in Sydney and Melbourne CBDs, alongside a growing industrial and healthcare property platform. The company’s funds management business generates fee income from managing capital on behalf of institutional investors. The shift toward hybrid working has created challenges for office property demand, though premium-grade assets in prime CBD locations tend to outperform secondary stock. Dexus has been strategically diversifying beyond office into industrial, healthcare, and alternative real estate sectors to build a more resilient earnings base. Key considerations include office occupancy trends, rental growth prospects, development pipeline execution, and the trajectory of the funds management platform.

MTS – Metcash Ltd

Metcash Ltd (ASX:MTS) is Australia’s leading wholesale distribution company, supplying independent retailers across food, liquor, and hardware sectors through brands including IGA, Cellarbrations, and Mitre 10. The company operates as the backbone of the independent retail network, enabling locally owned stores to compete with major chains through centralised purchasing, marketing, and logistics support.

MTS’s ASX dividend yield of 5.95% is fully franked at 100%. Metcash’s business model benefits from long-term relationships with thousands of independent retailers who rely on the company’s distribution network and brand support. The food distribution segment, anchored by the IGA supermarket network, provides defensive revenue as grocery spending remains essential. The hardware division has grown significantly following the acquisition of Total Tools, a national franchise network of trade-focused tool and equipment stores. Key risks include competition from Woolworths and Coles affecting independent grocery market share, and consumer spending patterns in the hardware sector.

ARF – Arena REIT

Arena REIT (ASX:ARF) is a specialised Australian REIT that invests in social infrastructure properties, primarily childcare centres and healthcare facilities across Australia. The REIT owns a portfolio of purpose-built childcare centres leased to major early childhood education operators on long-term triple net lease agreements.

ARF’s ASX dividend yield of 5.78% is distributed as unfranked trust income. Arena REIT occupies a unique niche in the Australian REIT sector through its focus on social infrastructure properties that benefit from strong government policy support and essential service demand. Childcare centres in Australia benefit from substantial government subsidies that underpin tenant revenue stability, and the growing participation of women in the workforce continues to drive structural demand for childcare services. The triple net lease structure means tenants bear the majority of property expenses, resulting in highly efficient income for the REIT. Long weighted average lease expiries and built-in rental escalation mechanisms provide income growth visibility. Key risks include changes to government childcare subsidies, regulatory requirements affecting childcare centre operations, and interest rate sensitivity.

GNG – GR Engineering Services Ltd

GR Engineering Services Ltd (ASX:GNG) is an Australian engineering and construction company specialising in the design, construction, and commissioning of mineral processing plants and related infrastructure for the mining industry. The company provides turnkey engineering solutions to mining companies across gold, base metals, lithium, and other mineral commodities.

GNG’s ASX dividend yield of 5.76% is fully franked at 100% GR Engineering has built a strong reputation in the mining services sector for delivering projects on time and on budget, earning repeat business from clients across the Australian and international mining industry. The company benefits from the ongoing investment cycle in new mine developments and processing plant upgrades, particularly in the gold and critical minerals sectors. GR Engineering’s relatively asset-light business model, focused on engineering expertise rather than heavy equipment ownership, enables efficient capital deployment and strong cash flow generation. Key factors for investors include the mining industry capital expenditure cycle, contract pipeline visibility, and the competitive landscape in mining engineering services.

FAQs

  1. What is considered a high dividend yield on the ASX?

A dividend yield above 5% is often viewed as relatively high among ASX-listed companies, though sustainability depends on earnings stability and cash flow.

  1. Are all dividends from ASX companies franked?

No. Some companies distribute fully franked dividends, which include tax credits, while others—such as many REITs—pay unfranked trust distributions.

  1. Why do investors look for high dividend yield stocks?

High-yield shares can provide regular income streams, particularly attractive for investors seeking cash returns alongside potential capital appreciation.