2 High Yield ASX Dividend Stocks FY26

Investors who want a high-yield dividend in 2026 are closely analysing both New Hope Corporation and IGO to assess their potential as top ASX dividend stocks.

New Hope currently offers a high-yield dividend which is supported by strong cash flow and a solid balance sheet while IGO’s high-yield dividend outlook depends on a sustained return to profitability.

New Hope Corporation (ASX: NHC) - A Leading Pick Among ASX Dividend Stocks

has attracted interest because many investors are screening the stock for a high-yield dividend opportunity.

The company in the January 2026 quarter reported Group ROM coal production of 4.1Mt which was up 4.8% from the prior quarter while coal sales increased 8.2% to 2.9Mt because logistics improved across Bengalla and New Acland.

Average realised pricing was $139.0 per tonne for the quarter which supported underlying EBITDA of $106.9 million and $214.8 million for the first half of FY26.

Yield Outlook and Valuation

The balance sheet is strong which includes an available cash balance of $616.8 million which provides flexibility to support its high-yield dividend profile during periods of weaker coal pricing.
The stock has current annual yield of 7.2% and trades at a P/E ratio of 9.44 which makes it attractive for income focused investors who want a high-yield dividend supported by solid cash reserves.

The company has distributed fully franked dividends on a semi-annual basis since 2021 which highlights its commitment to returning capital to shareholders.

Production Outlook and Cost Guidance

Bengalla Mine is expected to return to its 13.4Mtpa ROM production rate in the second half of FY26 while FY26 Group coal sales guidance is between 10.2Mt and 11.5Mt.

FOB cash cost guidance for Bengalla remains between $81 and $89 per sales tonne while sustaining capital guidance has been reduced to between $100 million and $130 million because of capital optimisation under current market conditions.

The company in the first half of FY26 reported operating cash flow of $185 million despite lower benchmark coal pricing which shows resilience across the commodity cycle.

IGO Limited (ASX: IGO) — Can It Reclaim Its Place Among Top ASX Dividend Stocks?

has drawn attention from investors who want a high-yield dividend in 2026.
The company in 1H26 reported underlying EBITDA of $49 million which marked a significant improvement from the prior period while net loss after tax narrowed to $34 million compared to a much larger loss in 1H25.

Underlying free cash flow was positive at $29 million and the company held a strong balance sheet with $299 million in net cash as of 31 December 2025 but the company did not declare any interim dividend which extended its pause on shareholder distributions.

Underlying profits and free cash flow were below historical levels in 2025 which significantly reduced reported earnings and made it irrational for the board to declare dividends in 2025.

Dividend Outlook and What Could Change in FY26

The company had distributed fully franked dividends on a semi-annual basis for three consecutive years before 2025 and the return of a high-yield dividend in 2026 will likely depend on the company achieving consistent profitability.

Management priorities include maximising production at Greenbushes through the CGP3 ramp up, completing life of mine optimisation reviews and maintaining strict capital discipline at Kwinana.

If Greenbushes maintains strong margins and the group reports a positive net profit in upcoming FY26 results, the board may consider reinstating dividends later in the year.

(Source: Company Announcements)