Best ASX stocks to buy for consistent income stream

Washington H. Soul Pattinson, APA Group and Medibank Private keep showing up as solid names when it comes to dividend payouts backed by steady earnings, strong balance sheets and great capital allocation which makes them ideal for investors who want consistent passive income.

Washington H. Soul Pattinson & Company Limited (ASX: SOL) 

is  seen as one of the most steady dividend payers in Australia because it is supported by its wide investment mix across big caps, private equity, credit, agriculture, property and also new upcoming companies. In FY25 its revenue went up 15% to about A$954.6M. The regular NPAT was slightly higher by 1% at A$491M but statutory NPAT dropped 27% to A$364.2M because of one off scheme and financing expenses linked with the merger with Brickworks. The balance sheet looks strong with net assets worth A$9.41B and cash of A$238.8M. For shareholders, SOL announced fully franked dividends of 99cps in FY25 compared with 95cps in FY24 which makes it 25 years in a row of dividend increases. That meant around A$364M given back to investors and the present annual yield is 2.67%, keeping its name as a trusted passive income stock.

APA Group (ASX: APA) 

is one of the most reliable dividend paying companies in Australia with 21 years straight of distribution growth. In FY25 the company’s revenue went up 5.2% to A$2.72B and its underlying EBITDA grew 6.4% to A$2.02B. Free cash flow also ticked up a bit to A$1.08B which gave enough room for both reinvestment and distributions. Statutory NPAT was A$129M but that was affected by non operating items whereas the underlying NPAT was stronger at A$224M. A full year distribution of 57cps was announced which is 1.8% higher than last year and guidance is for 58cps in FY26. This makes the current annual yield about 6.41% which income focused investors will like. APA has a solid balance sheet too with A$2.4B cash and unused debt facilities and no big debt repayments until 2027. With over 90% of revenues contracted and linked to inflation the company continues to deliver predictable earnings and support its long history of dividend growth.

Medibank Private Limited (ASX: MPL) 

managed to put up a strong show in FY25. The group revenue went up by 5.2% to about A$8.6 billion and its underlying NPAT was higher by 8.5% at A$618.7 million. This came mainly from steady growth in both resident and non resident health insurance and also a big 27% jump in Medibank Health’s segment profit. Health Insurance operating profit rose 7.1% to A$741.5 million. Expenses moved a little higher to A$654.9 million as more was spent on digital and customer projects but still the operating margin improved to 9.0%. The balance sheet stayed in good shape with equity of A$2.34 billion and that leaves room for future M&A. For shareholders a fully franked dividend of 18 cps was declared which is 8.4% more than last year and had a payout ratio of 80.1%. The current annual yield is 3.73% and shows Medibank’s focus on stable cash along with disciplined growth and constant investment in health and wellbeing.

(Source: Company Announcements)