Which ASX shares paid the best dividends in 2025?

There are many investing strategies that can bring you strong returns – one of which is dividend investing. 

A dividend is a portion of a company’s profits paid to shareholders, and investors may target dividend-paying shares because they provide passive income.

This can bring returns even if a stock price falls. 

On the flip side, if a dividend stock also increases in value, you’ve brought yourself the magical combination of passive income and capital growth. 

Dividends are shrinking

According to S&P Global, Australia has historically been one of the highest-yielding equity markets in the world. 

However, this has shifted in the last few years. 

As of December 31, 2024, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was approximately 3.5%.

While this still outpaced Europe, Canada and the US, it’s significantly lower than its long-term average of approximately 4.5%.

So what does this mean for dividend investors?

Broadly speaking, it’s harder to capture high yields, and high paying yields are increasingly coming from a smaller pool of companies. 

With that in mind, here are two dividend shares that paid out some of the best yields in 2025. 

APA Group (ASX: APA)

APA Group is Australia’s largest energy infrastructure company. 

In 2025, it paid out an annual dividend of 57 cents per share. 

This has been on a yearly uptick for more than 20 years. 

Based on its current share price, this equates to a dividend yield of roughly 6.3%, well above the average trailing yield of the ASX 300.

If an investor held $10,000 worth of shares in APA Group, they would have earned more than $800 in passive income based on last year’s opening share price of $7.03. 

Not only did it reward investors with strong dividends, it also rose more than 28% last year.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is the largest operator of oil and gas production in Australia and is Australia’s largest independent dedicated oil and gas company.

Last year, it paid roughly $1.66 per share in total dividends for the year.

Based on its current share price, that equates to a dividend yield of approximately 7%. 

At the start of last year, shares were trading at roughly $25.00 per share. 

An investor who held $10,000 in Woodside shares at that price for the last year would have enjoyed $700 in passive income. 

Woodside also may appeal to dividend investors as it maintains its status as one of Australia’s largest companies. 

This means investors hold a quality company with a proven track record, as well as one that pays strong yearly dividends. 

The post Which ASX shares paid the best dividends in 2025? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.