Over the past year or two, the S&P/ASX 200 Index (ASX: XJO) has enjoyed a significant rally. The ASX 200 has lifted from under 7,000 points in late 2023 to the all-time record high of 9,115.2 points that we saw last year. At today’s pricing, the index is sitting at 8,932 points at the time of writing, up more than 30% from that 2023 low. This push higher has obviously been good news for many ASX investors. However, it has also had the less-welcome side effect of reducing the yields that many popular ASX 200 dividend shares trade on.
What was a common yield in 2022 or 2023 now looks like a missed opportunity in 2026.
But although yields are down across the board, there are still opportunities to buy ASX dividend shares today and secure a decent stream of passive income. So today, let’s go over five ASX dividend shares that look set to pay a dividend yield of around 4%, provided they keep their 2026 payouts at at least 2025’s levels, of course.
Five ASX dividend shares that could pay a 4% yield in 2026
First up is Telstra Group Ltd (ASX: TLS). This telecommunications provider has long been known as one of the dividend income heavyweights of the ASX. Telstra has done a commendable job of raising its dividends like clockwork in recent years. The 19 cents per share in fully franked dividends that the company forked out last year gives Telstra a trailing dividend yield of 3.94% at current pricing.
It will come as no surprise to income investors that our next stock is an ASX 200 bank. ANZ Group Holdings Ltd (ASX: ANZ), like its major bank peers, has a long and respectable track record of providing its investors with fat dividends. This ASX dividend share has had a heck of a run, up almost 60% since mid-2023. That has reduced its dividend yield substantially. But even so, the $1.66 in dividends per share (albeit partially franked) that this bank paid out in 2025 gives ANZ a trailing dividend yield of 4.56% today.
It’s a similar story with NAB’s ASX banking stablemate Westpac Banking Corp (ASX: WBC). Like NAB, Westpac shares have enjoyed a solid run over the past few years, almost doubling in value since mid-2023 with its 91% gain. In 2025, Westpac funded two fully franked dividends, worth 76 and 77 cents per share respectively. These give this ASX dividend share a dividend yield of 3.94% today.
Last but not least…
Turning away from the banking sector now, it’s time to check out Transurban Group (ASX: TCL). Transurban is famous (or perhaps infamous) for owning the vast majority of tolled arterial roads across Australia, most notably in Sydney and Melbourne. These toll roads give Transurban a steady stream of cash flow, which the company uses to fund a robust and reliable dividend. 2025 was the fourth year in a row that investors enjoyed a dividend increase, with the company paying out 32 cents per share in February and 33 cents in August. These give the company a trailing yield of 4.86% today (although that doesn’t come fully franked).
Finally, let’s get back to another telco with TPG Telecom Ltd (ASX: TPG). TPG is smaller than Telstra, although arguably more agile. But like its larger rival, this ASX dividend share has become a reliable income payer. TPG has funded two dividends per year for the past few years, which have all come in at 9 cents per share (and fully franked) since 2022. Even if we disregard the additional capital return from last year, these dividends give TPG shares a hefty dividend yield of 4.66% today.
The post 5 ASX dividend shares paying 4% a year on average in 2026! appeared first on The Motley Fool Australia.
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More reading
- Telstra shares’ last all-time high? It will shock you
- Forget term deposits! I’d buy these two ASX 200 shares instead
- Sell alert! Why this analyst is calling time on ANZ shares
- My 3 best ASX dividend-focused stocks to buy in February
- How much could the Telstra share price rise in the next year?
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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