ASX 200 stocks likely to increase their dividends in 2026

All three stocks maintained consistent dividend payouts backed by earnings growth disciplined spending strong cash flow and stable balance sheet position

Commonwealth Bank of Australia (ASX: CBA)

on 12 February 2026 released its 1H26 results for the dated ended 31 December 2025. The group continued to show stable performance with strong customer activity and strong balance sheet settings during a challenging economic environment.

The interim dividend was declared at $2.35 per share and was fully franked. The payout ratio was around 74% of normalised cash NPAT. The Dividend Reinvestment Plan will continue and shares for the plan are expected to be bought through on market purchases.

CBA on 13 May 2026 shared its 3Q26 Trading Update. Higher energy costs rising interest rates and Middle East conflict created pressure on households businesses and supply chains. Even with these conditions the bank maintained strong capital liquidity deposit funding and provisioning levels.

Quarterly statutory NPAT was about $2.6 billion while cash NPAT reached about $2.7 billion.
Operating income remained steady as lending and deposit growth balanced fewer trading days. Expenses increased 1% mainly due to cloud technology software licensing and AI investment.

Wesfarmers Ltd (ASX: WES) 

achieved 2026 half year NPAT of $1.603 billion for the period ended 31 December 2025. The earnings growth came mainly from Bunnings Kmart Group and WesCEF as divisions-maintained productivity and cost discipline in a difficult market.

Bunnings delivered sales growth across all categories and regions while Kmart benefited from strong demand for Anko products. WesCEF gained from better lithium prices and solid mine performance. Officeworks results stayed in line with guidance despite transformation costs.

The interim dividend was declared at $1.02 per share and was fully franked. This was 7.4% higher than the prior corresponding period. The group also paid a capital management distribution of $1.50 per share worth $1.7 billion during the half. Cash realisation remained at 99%.

The group continued investing in AI digital capabilities and supply chain improvements. Retail divisions traded steadily at the start of the second half and lithium earnings are expected to be slightly stronger than the first half.

Telstra Group Ltd (ASX: TLS) 

achieved strong first half FY26 results with earnings growth across Mobiles Fixed C&SB InfraCo Fixed and Amplitel. Mobile EBITDA increased by $93 million as more customers chose the network and mobile service revenue rose 5.6%.

Underlying EBITDA grew 5.3% while Cash EBIT increased 14%. Operating expenses fell by $179 million or 2.4% through cost discipline and efficiency gains. Positive operating leverage reached 3.1 percentage points and BAU capex declined 5.2% to $1.5 billion.

The interim dividend was declared at 10.5 cents per share. It was 90.5% franked with 9.5 cents franked and 1 cent unfranked. The company also increased its on market share buyback from up to $1 billion to up to $1.25 billion after completing $637 million during the half.

Growth continued in Mobiles Fixed C&SB InfraCo Fixed and Amplitel whereas Enterprise and International recorded declines. FY26 underlying EBITDA guidance was tightened to between $8.2 billion and $8.4 billion with Cash EBIT guidance unchanged at $4.55 billion to $4.75 billion.

(Source: Company Report)