Where to invest $20,000 for dividend income on the ASX

If you are looking to put $20,000 to work, ASX dividend stocks can be a great place to start.

They offer the potential for regular income while also providing exposure to businesses that can grow over time. The key is to focus on companies with reliable earnings, sustainable payouts, and supportive industry conditions.

With that in mind, here are three ASX dividend stocks that could be worth considering.

Charter Hall Retail REIT (ASX: CQR)

The first dividend stock to consider is Charter Hall Retail REIT.

This property trust owns a portfolio of convenience-based retail centres, typically anchored by supermarkets and essential service providers. These locations tend to attract consistent foot traffic, which supports stable rental income.

Rather than relying on discretionary spending, the trust benefits from everyday consumer activity. This makes its income stream more resilient compared to traditional retail landlords.

Macquarie is positive on the company and recently put an outperform rating and $4.15 price target on its shares.

As for income, the broker expects dividends per share of 25.5 cents in FY 2026 and then 25.4 cents in FY 2027. Based on its current share price of $3.96, this would mean dividend yields of approximately 6.4% for both years.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend stock that could be worth a look is Harvey Norman.

Unlike many retailers, Harvey Norman operates a unique franchise model that generates income through both retail sales and property ownership. This dual structure gives it multiple earnings streams and can help support its dividend payments.

While retail conditions can fluctuate, Harvey Norman has shown an ability to remain profitable across cycles, supported by its brand recognition and broad product offering.

Macquarie is also positive on this one and earlier this month put an outperform rating and $6.60 price target on its shares.

With respect to dividends, Macquarie expects Harvey Norman to reward shareholders with fully franked payouts of 27.8 cents per share in FY 2026 and 31.2 cents per share in FY 2027. Based on its current share price of $5.23, this would mean dividend yields of 5.3% and 6%, respectively.

Premier Investments Ltd (ASX: PMV)

A third ASX dividend stock to consider is Premier Investments.

This company owns the Smiggle and Peter Alexander brands, which have built strong customer followings both in Australia and internationally.

It also holds a significant investment in Breville Group Ltd (ASX: BRG), which adds another layer of value and income potential to the group.

UBS is bullish on the company. Last week, it put a buy rating and $18.00 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 58 cents per share in FY 2026 and then 64 cents per share in FY 2027. Based on its current share price of $12.79, this equates to dividend yields of 4.5% and 5%, respectively.

The post Where to invest $20,000 for dividend income on the ASX appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Charter Hall Retail REIT and Harvey Norman. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.