With December just around the corner, it’s a great time to take stock of our investing markets and check out which ASX shares look ripe to add to a stock portfolio. Despite a rebound last week, the markets are still down from their October records. I thought it would be a great opportunity to check out some Australian dividend stocks.
So today, let’s talk about five ASX dividend stocks that I think would serve an income-focused portfolio well right now.
Five Australian dividend stocks to put under the tree this December
Coles Group Ltd (ASX: COL)
I’ve long thought of Coles as a winning Australian dividend stock. For one, it offers a defensive nature as a price-focused provider of food and household essentials. For another, it has a strong income track record, having delivered an annual dividend increase every year since 2018.
Coles shares did go on a big run this year, but have since pulled back. That’s boosted this dividend stock’s yield back over 3% at recent pricing. Coles shares have historically come with full franking credits attached too.
Australian Foundation Investment Co Ltd (ASX: AFI)
AFIC is a listed investment company (LIC) and Australian dividend stock that has been on the ASX for decades. Over this time, investors have come to appreciate this stock’s conservative investing style, which AFIC uses to manage a vast underlying portfolio of Australian blue chips, complemented by some international shares.
AFIC already trades on an attractive (and fully franked) yield of around 3.7%, but has recently confirmed that investors will enjoy two special dividends over 2026.
Telstra Group Ltd (ASX: TLS)
I think Telstra offers income investors many of the desirable attributes that Coles does. The mobile and internet services that Telstra provides are essential in today’s world, and Telstra has a long-held leading position in providing them across the Australian market.
This legendary Australian dividend stock has long been an income staple for good reason. Today, it offers a decent dividend yield of 3.88%, which has also always come fully franked.
MFF Capital Investments Ltd (ASX: MFF)
There aren’t too many ways ASX investors can invest in US stocks and get a fully franked dividend. But this LIC is one of them. Like AFIC, MFF holds an underlying portfolio of shares that it manages on behalf of its investors. Unlike AFIC, though, MFF mostly invests in US stocks, following a Buffett-inspired playbook of buying quality companies at compelling prices and holding them indefinitely. Some of its long-term holdings include Amazon, Mastercard, Alphabet, and Visa.
Since MFF is domiciled in Australia, though, it pays tax here and thus has the capacity to fully frank its dividends. At present, this dividend stock is trading on a yield of about 3.5%.
Wesfarmers Ltd (ASX: WES)
Our final Australian dividend stock today is another income favourite in Wesfarmers. This company’s strength arguably comes from its diversity. It is most famous for its highly successful retailers like Bunnings and Kmart. But Wesfarmers also owns a wide range of other businesses, spanning from healthcare and mineral processing to fertilisers and chemicals.
Wesfarmers has a stellar track record of delivering both growth and rising dividends for shareholders over many decades. Today, its shares trade with a fully franked yield of about 2.5%.
The post 5 best Australian dividend stocks to buy in December appeared first on The Motley Fool Australia.
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* Returns as of 18 November 2025
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More reading
- 2 top ASX dividend shares for retirees
- These are the top ASX blue-chip shares I’d buy today
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- Macquarie reveals ASX 200 share tips in each market sector for 2026
- 3 reasons Telstra shares are a screaming buy right now!
Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. 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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