Best Dividend Stocks to Buy in 2026

For investors who are in search of reliable dividend income, the following three ASX stocks offer a compelling combination of consistent dividend history and reasonable current valuations.

APA Group (ASX: APA)

APA Group (ASX: APA) distributes dividends on a semi-annual basis and will release its results for the half year ended 31 December 2025 on 19 February 2026 which will provide further clarity on its growth outlook.

The group reported underlying EBITDA of $2.02 billion which was up 6.4% year-on-year and it finished FY25 with a solid balance sheet supported by operating cash flow of $1.28 billion and free cash flow of $1.08 billion.
APA Group also entered into a binding agreement to sell its 20% stake in the Allgas gas distribution network to Stonepeak for about $64 million which will simplify the portfolio and help in execution focus.

Distribution per security rose to 57 cents which marked the 21st consecutive year of distribution growth and reflects the stability of its cash flow profile while current annual dividend yield is 6.32%.

Underlying EBITDA for FY26 is expected to increase to between $2.12 billion and $2.20 billion while distribution guidance has been lifted to 58 cents per security.

A large portion of APA’s revenue is linked to inflation which supports steady organic growth over time as the company continues to invest in new energy assets.

McMillan Shakespeare Limited (ASX: MMS)

McMillan Shakespeare Limited (ASX: MMS) has an exceptional dividend legacy as it consistently distributes fully franked dividends on a semi-annual basis and currently offers an annual yield of 8.79% while the market capitalisation stands at $1.17 billion.

FY25 was a solid year as normalised underlying net profit after tax and amortisation reached $103.2 million while revenue from continuing operations increased 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 Shakespeare said it will release its 1H FY26 Interim Results Presentation on 23 February 2026 which may act as a catalyst for a potential rally and provide clarity on the growth outlook.

Woodside Energy Group Limited (ASX: WDS)

Woodside Energy Group Limited (ASX: WDS) consistently distributes fully franked dividends on a semi-annual basis and the stock currently offers an annual dividend yield of 6.45%.

The company delivered a solid result in 2025 as full year production reached a record 198.8 million barrels of oil equivalent which was above its stated guidance range.

Quarterly production came in at 48.9 MMboe while key assets such as Pluto LNG achieved 100% reliability for the second consecutive quarter which highlights operational strength across the portfolio.

 The company reported total revenue of US$3 billion for the December 2025 quarter with an average realised price of US$57 per barrel of oil equivalent.

Although the business remains exposed to energy price movements, it continues to execute well which has supported consistent dividends over time and its future growth projects also appear promising.

(Source: Company Reports)