Here’s 3 ASX dividend stars yielding over 5%

When markets are choppy, ASX dividend shares can still offer investors a steady stream of income.

Instead of relying only on share price gains, dividend stocks pay cash into your account simply for holding them. That can make a real difference over time, especially when dividends are reliable and well supported.

Here are 3 ASX dividend stars that currently offer attractive income for investors looking beyond the usual ‘big four’ bank shares.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is one of Australia’s largest oil and gas producers and a heavyweight in the ASX energy sector.

The company generates strong cash flow from its LNG and energy operations, allowing it to pay generous dividends to shareholders.

At current prices, Woodside is offering a dividend yield of roughly 6.5%, depending on market movements. Most recent dividends have been fully franked, which adds extra value for Australian investors at tax time.

Woodside’s dividend policy aims to return a large portion of profits to shareholders. While energy prices can fluctuate, Woodside’s scale and diversified asset base help smooth earnings across the cycle.

As a result, Woodside remains one of the strongest high-yield options on the ASX outside the banking sector.

Dicker Data Ltd (ASX: DDR)

Dicker Data operates in a very different space, supplying IT hardware, software and cloud solutions to businesses across Australia and New Zealand.

What makes Dicker Data stand out is its long track record of paying dividends. Since listing, the company has consistently returned profits to shareholders and built a reputation for reliability.

At present, Dicker Data offers a dividend yield of around 5.5%, supported by quarterly fully franked dividend payments throughout the year.

Unlike many technology companies, Dicker Data is profitable, cash-generative and conservative with debt, helping support dividends even when technology spending slows.

This positions Dicker Data as a strong income option outside the mining and energy sectors.

BlueScope Steel Ltd (ASX: BSL)

BlueScope Steel is one of Australia’s largest steel producers, supplying construction and infrastructure markets both locally and offshore.

Its regular dividend yield is lower than the other two stocks on this list. However, BlueScope has recently declared a large special dividend, which has lifted shareholder returns.

When special dividends are included, BlueScope’s effective yield for the year moves above 5%, making it attractive for income investors who are comfortable with some cyclicality.

Steel prices and demand can fluctuate, so BlueScope’s dividends are not as predictable from year to year. That said, the company’s strong balance sheet gives it flexibility to return excess cash when conditions allow.

Foolish takeaway

These 3 stocks show there is still solid income available on the ASX.

Woodside offers attractive income backed by energy cash flows. Dicker Data provides consistency and reliability. BlueScope adds the potential for boosted returns through special dividends.

High yields can be appealing, but the best income comes from businesses that can keep paying through good times and bad.

The post Here’s 3 ASX dividend stars yielding over 5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.