4 Undervalued ASX stocks offering high dividends

The following undervalued ASX stocks offer attractive levels of passive income through high dividend yields while their valuations provide downside protection.

Undervalued ASX high dividends stocks

Spark New Zealand Limited (ASX: SPK)

IPH Limited (ASX: IPH)

Atlas Arteria Limited (ASX: ALX)

Beach Energy Limited (ASX: BPT)

Spark New Zealand Limited (ASX: SPK)

Spark New Zealand Limited has executed a broad transformation strategy through the divestment of non-core assets, including the sale of a 75% stake in its data centre business which has reduced leverage while allowing the company to retain long-term upside through its remaining 25% stake.

FY25 revenue came in at NZ$3.7 billion while free cash flow was NZ$330 million which reflects disciplined capex and ongoing cost reduction initiatives.

Spark has maintained its record of paying unfranked dividends twice a year, with the current annual dividend yield at 11.14%, supported by guidance to distribute 100% of free cash flow in FY26 and a price/free cash flow ratio of 5.05 which highlights the current attractive valuation.
The company’s new five-year strategy prioritises additional cost efficiencies, investment in network quality and customer experience.

IPH Limited (ASX: IPH)

IPH Limited delivered a solid FY25 supported by improved intellectual property filing activity across its key markets and resilient demand for IP services.

During the year, the company began integrating artificial intelligence into its workflows which is expected to lift productivity and strengthen its competitive position while underlying EBITDA reached $207.2 million driven by organic growth, pricing discipline and ongoing cost efficiencies.

IPH has continued to deliver strong shareholder returns backed by steady earnings and disciplined capital allocation while the stock trades on a P/E ratio of 13.77 and has free cash flow yield of 15.22%.
In FY25, the company distributed $0.365 per share in partially franked dividends, up from $0.35 per share in FY24 which amounts to a current annual dividend yield of 10.31%.

Atlas Arteria Limited (ASX: ALX)

Atlas Arteria Limited is able to have consistent earnings from essential transport infrastructure assets across France, Germany and the United States.
In the first half of 2025, the company delivered solid operating performance which saw proportional toll revenue rise by 8.1% and EBITDA increase by 7.8% as traffic growth and CPI linked toll escalations supported the portfolio.

Statutory net profit after tax for the half year was $73.3 million which was impacted by a one off temporary supplemental tax in France while underlying free cash flow per security improved to 19.4 cents.
The company pays unfranked dividends twice a year which have gradually increased over time and currently provides an attractive annual yield of 8.28%.

Beach Energy Limited (ASX: BPT)

Beach Energy Limited delivered a strong start to FY26 as there was 8% quarter-on-quarter increase in production to 5.0 MMboe and an 18% rise in sales revenue to $537 million.
A key milestone during the quarter was the Waitsia Gas Plant moving close to first sales gas with commissioning of critical systems largely completed and no technical issues are expected to delay the start up timeline.

The balance sheet was solid at quarter end with total liquidity of $586 million which included $196 million in cash and $390 million in undrawn facilities.
The company continues to return capital to shareholders through fully franked dividends paid twice a year with a current annual dividend yield of 7.71% which is supported by an attractive valuation as price/free cash flow ratio is 6.39.

(Source: Company Announcements)