Which ASX dividend shares are predicted to have the highest yields in FY25?

ASX dividend shares with big dividend yields could be what some investors are looking for in FY25.

The new 2025 financial year has just started (for most businesses) and this could be a good time to consider which stocks may deliver the biggest payouts.

Of course, dividends are not guaranteed and the highest yields of FY25 may not be sustainable in FY26, depending on what happens with their profitability.  

For a business to have a dividend yield of at least 10%, it’s likely that the company has a relatively high dividend payout ratio and a fairly low price/earnings (P/E) ratio.

Big yields from these ASX dividend shares

Forecast dividends are not guaranteed to occur, but analysts expect the upcoming payouts from the below selected stocks for FY25.

ASX coal share New Hope Corporation Ltd (ASX: NHC) is expected to pay a grossed-up dividend yield of 10.4% according to Commsec.

ASX retail share Shaver Shop Group Ltd (ASX: SSG) is projected to pay a grossed-up dividend yield of 11.9% according to Marketscreener.

Retailer Adairs Ltd (ASX: ADH) is forecast to pay a grossed-up dividend yield of 11.25%, according to Commsec.

Office property owner Centuria Office REIT (ASX: COF) could pay a distribution yield of 10.5% according to Commsec.

Salary packaging and fleet management business McMillan Shakespeare Ltd (ASX: MMS) is projected to pay a grossed-up dividend yield of 11.75%, according to Commsec.

Shoe retailer Accent Group Ltd (ASX: AX1) is forecast to pay a grossed-up dividend yield of 10.5%, according to Commsec.

Would I buy these stocks?

I’d be attracted to considering the retailers as ASX dividend share because they could be cyclical opportunities.

Discretionary spending isn’t always going to be consistent – weaker economic conditions can lead to less household spending in the short-term, which hurts retailers. But I believe that things could start improving in the medium-term as wages keep rising and eventually interest rates come down. I think the lower share prices are opportunities with these retailers.

I don’t know enough about McMillan or the salary packaging industry to feel confident about investing in the stock for dividends, or whether the business will be able to achieve long-term earnings growth.

Energy is integral to our western and emerging market economies, so New Hope could continue paying good dividends. However, many countries are talking about moving away from coal in the longer-term, so there could be lower demand for coal in the foreseeable future. I’d be wary of investing with that apparent dynamic to play out in the coming decade or two.

The post Which ASX dividend shares are predicted to have the highest yields in FY25? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 coal shares smashing the market today?
• 2 high-yield ASX shares predicted to pay huge dividends in FY26
• 1 ASX dividend stock to buy that’s down 60%
• Forget term deposits and buy these ASX dividend shares
• 3 ASX dividend stocks to buy with 5% to 7% yields

Motley Fool contributor Tristan Harrison has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Accent Group, McMillan Shakespeare, and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.