Top 5 Highest Dividend Stocks on the ASX (2025) & What’s Next for ASX Mining Stocks?
The Australian Securities Exchange (ASX) is a prime destination for income-focused investors, especially those seeking high-yield dividend stocks and exposure to mining and resource shares. In this guide, we explore the top 5 highest dividend-paying stocks on the ASX and analyze the future outlook for ASX mining stocks in the current economic climate.
🏆 Top 5 Highest Dividend Stocks on ASX in 2025
Dividend stocks continue to be popular among Australian investors, thanks to fully franked dividends and the country’s strong resource and banking sectors. These high-dividend ASX stocks offer a combination of income stability and long-term value.
1. Commonwealth Bank of Australia (ASX: CBA)
Sector: Banking
Dividend Yield (2025): ~5.1% (fully franked)
Keywords: ASX bank stocks, highest dividend stocks ASX
Commonwealth Bank remains a cornerstone for dividend income portfolios. With robust retail lending, strong capital ratios, and efficient operations, CBA continues to deliver sustainable dividend growth.
2. Westpac Banking Corporation (ASX: WBC)
Sector: Banking
Dividend Yield (2025): ~6.2%
Keywords: ASX dividend banking stocks, income investing Australia
Westpac has rebounded after recent restructuring efforts, rewarding shareholders with a healthy yield. Higher interest rates have helped boost net interest margins.
3. BHP Group (ASX: BHP)
Sector: Mining
Dividend Yield (2025): ~7.3% (variable)
Keywords: ASX mining dividend stocks, high-yield mining shares
BHP continues to be a top dividend payer on the ASX, distributing strong cash flows from iron ore, copper, and metallurgical coal operations. While payouts fluctuate with commodity prices, BHP has consistently rewarded shareholders.
4. Woodside Energy Group (ASX: WDS)
Sector: Energy
Dividend Yield (2025): ~7.8%
Keywords: ASX energy stocks, dividend-paying oil and gas stocks
Woodside delivers reliable dividends supported by LNG and oil production. It remains a popular pick among income-focused ASX investors despite energy price volatility.
5. Telstra Group (ASX: TLS)
Sector: Telecommunications
Dividend Yield (2025): ~4.6%
Keywords: ASX telecom dividend stocks, stable income stocks Australia
Telstra offers stable, fully franked dividends and continues to attract conservative investors. Its expanding 5G network and digital transformation provide future upside.
📌 What to Watch
- Interest Rates: Higher rates support bank margins but can affect borrowing and corporate growth.
- Commodity Prices: Resource-linked dividends (BHP, WDS) depend on global demand and price cycles.
- Payout Sustainability: Look at payout ratios and earnings to assess dividend durability.
⛏️ What’s Next for ASX Mining Stocks?
The ASX mining sector remains one of the largest and most internationally exposed segments of the market. From iron ore giants to emerging lithium and rare earth explorers, ASX mining stocks continue to draw attention from both institutional and retail investors.
🔍 Sector Snapshot
Keywords: ASX mining stocks, mining shares ASX, future of Australian mining
Australia’s dominance in resources and energy means that ASX-listed mining stocks often reflect global commodity cycles. As of 2025, key themes include:
- Green Energy Transition: Demand for lithium, nickel, copper, and rare earths continues to rise with EV and renewable infrastructure growth.
- Iron Ore Outlook: Prices remain volatile due to China’s shifting demand, but majors like BHP, Rio Tinto (ASX: RIO), and Fortescue (ASX: FMG) maintain strong margins.
- Gold and Uranium Revival: With rising inflation fears and clean energy demand, investors are returning to gold and uranium miners.
📈 Mining Stocks to Watch in 2025
1. BHP Group (ASX: BHP)
- Diversified resource base.
- Major exposure to copper, a key metal for electrification.
- Reliable dividends make it a hybrid growth-income play.
2. Fortescue Metals Group (ASX: FMG)
- Leading iron ore exporter with increasing investment in green hydrogen.
- Potential to evolve into a clean energy major.
3. Pilbara Minerals (ASX: PLS)
- Top-tier lithium producer, well-positioned in the battery metals supply chain.
- Leverages rising global demand for electric vehicles and energy storage.
4. IGO Limited (ASX: IGO)
- Produces lithium and nickel, essential for the energy transition.
- Actively investing in clean energy projects and downstream processing.
5. Deep Yellow (ASX: DYL)
- Uranium development company.
- Exposure to the nuclear energy resurgence and energy security themes.
📊 Key Market Trends
Keywords: future of ASX mining, resource sector outlook, battery metals ASX stocks
- Decarbonization: Transition metals (lithium, copper, nickel) are becoming the new iron ore.
- Supply Constraints: Political and ESG pressures are limiting new mine approvals.
- M&A Activity: Consolidation continues as majors look to secure future resources.
⚠️ Risks to Consider
- Commodity price fluctuations.
- Geopolitical tensions and trade policies.
- Regulatory and environmental hurdles.
🧠 Final Thoughts: Balancing Yield and Growth in the ASX Market
For income seekers, the top dividend-paying ASX stocks offer reliable returns backed by strong earnings and, often, fully franked dividends. At the same time, the future of ASX mining stocks looks promising—particularly those aligned with the global energy transition.
By blending high-yield dividend stocks with growth-oriented resource plays, investors can build a resilient and diversified portfolio tailored to both short-term income and long-term capital growth.