I’d buy these ASX income stocks to beat inflation

Inflation is back in the headlines in 2026. 

Australia’s annual headline inflation rate rose to 4.6% in the 12 months to March, up from 3.7% in February, with fuel a major driver of the increase.

For investors, this creates a simple problem. Cash sitting in the bank needs to work harder just to maintain purchasing power.

That is why I think these ASX income stocks with forecast dividend yields above 8% could be worth considering.

GQG Partners Inc (ASX: GQG)

The first ASX income stock I would look at is GQG Partners.

GQG is a global investment manager, which makes it very different from a typical ASX dividend share.

Its earnings are tied to funds under management, investment performance, market conditions, and client flows. That means the dividend is not risk-free. A weak period for markets or fund flows could put pressure on profits and payouts.

But I think GQG has a few qualities that make it appealing for income investors.

It has a capital-light model, global reach, and exposure to institutional and wholesale investors around the world. If markets remain supportive and the company continues to attract or retain client money, it has the potential to generate strong cash flows.

According to CommSec, consensus estimates show that GQG is forecast to offer a dividend yield of around 12% in both FY26 and FY27.

That puts it well ahead of the current inflation rate and gives investors a potentially attractive income stream while they wait for long-term growth.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is another ASX income stock I think could help investors fight inflation.

The retailer has been out of favour at times because discretionary spending can be sensitive to interest rates, housing turnover, and consumer confidence.

But I think Harvey Norman is more interesting than a simple retail story.

It has a well-known brand, a large store network, offshore operations, and a significant property-backed element to the business. That property exposure gives it a different feel from many other retailers.

There are risks. If households remain under pressure from rising fuel costs, higher mortgage repayments, and cost-of-living concerns, spending on furniture, electronics, and appliances could be uneven.

But for investors focused on income, the valuation and yield are the attraction.

Consensus estimates point to Harvey Norman offering a dividend yield of around 8.5% in both FY26 and FY27.

While no dividend forecast is ever guaranteed, this is a business that has been through plenty of cycles before and continued to reward shareholders.

Foolish takeaway

Inflation at 4.6% changes the income conversation.

A 4% yield may no longer feel like enough for investors trying to protect their purchasing power.

That is why I think GQG Partners and Harvey Norman are worth a closer look. Both offer forecast yields above 8% in FY26 and FY27, based on consensus estimates.

Combined, I think they could help income investors fight inflation.

The post I’d buy these ASX income stocks to beat inflation appeared first on The Motley Fool Australia.

More reading

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• How to build a $1,000 a month passive income from the ASX
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
• Why I’d still buy these ASX dividend stocks as interest rates rise

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 Harvey Norman. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.