Best ASX stocks offering high dividend yield

The market is not fully recognising the future earnings potential of these ASX listed companies which has thereby created attractive opportunities for investors to earn high-yield dividends backed by solid fundamentals.

Yancoal Australia Limited (ASX: YAL) 

gained slight momentum as it surged 2% on 9 February and the company now has a market capitalisation of $8.05 billion while its near-term focus is to maximise production.
The company is a major Australian coal producer and exporter of both thermal and metallurgical coal and it currently offers an attractive annual dividend yield of 9.54%.

Yancoal delivered a very strong December 2025 quarter as attributable saleable coal output reached a record 10.4 million tonnes while full-year FY25 production stood at 38.6 million tonnes which was near the top end of guidance.

Average realised coal prices rose quarter-on-quarter to $148 per tonne which was supported by higher thermal and metallurgical coal prices despite difficult global market conditions.

The company has maintained a consistent shareholder return profile with fully franked dividends declared twice each year over the past three years and it ended the quarter with a strong cash balance of $2.13 billion.

IPH Limited (ASX: IPH) 

is underestimated by the market and on 20 November 2025 the company reported that group revenue rose by 7% to $241.7 million during the first four months of FY26.
The company has a current market capitalisation of $920.41 million while underlying EBITDA increased by 13% to $72.4 million.

The group has maintained a strong competitive position in key secondary intellectual property markets which has been driven by the scale benefits of its global platform and the completion of major Canadian acquisitions in FY25 has created a clear market leading IP platform in Canada.
IPH follows a disciplined capital management approach which includes returning cash to shareholders through dividend payments that are often partially franked and the company currently offers an attractive annual dividend yield of 10.37%.

The company confirmed that it will release its half year financial results for the period ended 31 December 2025 on 19 February 2026 which will allow investors to assess its future outlook in greater detail.

McMillan Shakespeare Limited (ASX: MMS) 

has one of the strongest dividend records on the ASX as it pays fully franked dividends twice a year and currently offers an annual yield of 8.64% while the market capitalisation stands at $1.19 billion.
The company operates across salary packaging, novated leasing, disability plan management, asset management and related financial products and services which provides diversification across multiple income streams.

FY25 was a solid year as normalised underlying net profit after tax and amortisation reached $103.2 million while revenue from continuing operations rose by 3% to $541.6 million.

The board declared a payout ratio of 100% of normalised earnings for FY25 while the balance sheet remains conservative with net debt to EBITDA of 0.5 times along with net cash of $53.2 million.
McMillan has surged 24% over the past 12 months and the company has said it will webcast its 1H FY26 Interim Results Presentation on 23 February 2026 which could act as a catalyst for further upside.

(Source: Company Announcements)