If I’m putting a meaningful amount of money into an ASX dividend stock, I want one thing above all else.
Confidence.
Not just in the next dividend, but in the business’ ability to keep paying and growing those dividends over the next decade or even beyond.
That’s why I keep coming back to supermarket giant Woolworths Group Ltd (ASX: WOW).
At a share price of $36.41 at the time of writing, I think it stands out as a dependable option for income-focused investors right now.
A business built on everyday spending
Woolworths sits at the centre of one of the most consistent parts of the Australian economy.
People need groceries and household goods regardless of what’s happening with interest rates, markets, or economic cycles. That creates a level of demand that is relatively stable compared to many other industries.
What I like is how Woolworths has built around that core.
Its scale, supply chain, and store network give it a strong competitive position. That helps support margins and cash flow, which ultimately underpin its ability to pay dividends.
A growing dividend profile
According to CommSec, consensus estimates point to Woolworths paying fully-franked dividends of $1.03 per share in FY26, then $1.14 per share in FY27, and finally $1.28 per share in FY28.
At the current share price, that puts it on a forward dividend yield of around 2.8% for FY26, rising to roughly 3.5% by FY28 if those forecasts are met.
It may not be the highest-yielding stock on the ASX, but that’s not really the point here.
For me, it’s about consistency and growth.
What $20,000 could generate in this ASX dividend stock
If you invested $20,000 into Woolworths shares today at $36.41, you’d be able to buy approximately 549 shares.
Based on FY26 dividend estimates of $1.03 per share, that would generate around $565 in annual income.
Looking ahead, if dividends grow to $1.28 per share by FY28, that same investment could generate roughly $700 per year.
And importantly, those dividends are expected to be fully franked, which can add additional value for Australian investors.
Foolish Takeaway
Woolworths may not offer the highest dividend yield on the ASX, but I think it offers something more important.
Reliability.
With a strong market position, consistent earnings, and growing dividends, I think it looks like a solid option for investors looking to put $20,000 to work in a dependable ASX dividend stock right now.
The post A dependable ASX dividend stock to buy with $20,000 right now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Woolworths Group Limited right now?
Before you buy Woolworths Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths Group Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
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Motley Fool contributor Grace Alvino 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 Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.