Many investors approaching retirement or living off superannuation will be looking for ASX shares that offer strong dividends. 

High dividend stocks can play an important role for investors living off their superannuation. They provide a regular income stream that can help fund retirement expenses without needing to sell down investments. 

This can offer greater stability and reduce the need to sell assets during periods of market weakness.

In Australia, dividend-paying shares can also be attractive due to the benefit of franking credits, which may reduce the tax payable on dividend income and improve after-tax returns, particularly for retirees in a low-tax environment.

The highest dividend yield isn’t always the best bet

High dividend yields can be attractive for retirees seeking income. However, an excessively high yield can sometimes be a warning sign rather than an opportunity. 

A dividend yield rises when a company’s share price falls. This may indicate investors are concerned about weaker earnings, financial stress or the sustainability of future dividend payments. 

Companies offering unusually high yields may be forced to reduce dividends if profits decline, potentially leading to both a loss of income and capital value. 

For retirees relying on their portfolio for regular cash flow, it is important to focus on the quality and consistency of dividends rather than simply chasing the highest yields. 

A sustainable dividend supported by strong cash flows and a healthy balance sheet is generally more valuable than a temporarily elevated yield that may not be maintained.

With that in mind, here are three consistent dividend stocks to consider. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers has delivered a long history of shareholder returns through businesses such as Bunnings Group and other essential retail operations. 

Its diversified earnings base and strong cash generation have supported a relatively dependable dividend stream over time. 

This year, it has also enjoyed considerable capital gains, seeing its share price rise 11% year to date. 

It is currently expected to pay a forward dividend yield of around 2.6% in FY27.

Woolworths Group Ltd (ASX: WOW)

Another great option for retirees looking for consistent passive income is Woolworths Group. 

Woolworths Group is a popular income stock thanks to its defensive supermarket business. It generates reliable cash flow from everyday consumer spending. 

While its dividend yield is lower than many banks, it has a strong history of paying consistent, largely fully franked dividends, alongside the potential for long-term capital growth.

It is expected to offer a fully franked dividend yield of 2.8% in FY27. 

Westpac Banking Corp (ASX: WBC)

Westpac is a popular dividend stock due to its strong position as one of Australia’s major banks and its history of paying attractive dividends. 

Its large customer base, recurring lending income and solid profitability have supported consistent shareholder returns over time. 

While bank earnings can fluctuate with interest rates and the economy, Westpac remains a core income holding for many Australian investors seeking reliable dividends and the potential for long-term capital growth.

It currently offers a generous dividend yield above 4%.

The post 3 of the best ASX dividend stocks to supplement your superannuation appeared first on The Motley Fool Australia.

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• Up 12% in 2026! Are Wesfarmers shares now too expensive?

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share market is a wonderful place to find investments that can offer huge passive income. There are a few businesses that offer a dividend yield of more than 10%, which I think can be very compelling.

But there are only a few businesses I’d consider as contenders for buys, given that high dividend yields aren’t necessarily reliable for payouts – some may be in danger of giving investors a significant dividend reduction.

I think the below two ideas can provide investors with a very good dividend yield for the foreseeable future.

Hearts and Minds Investments Ltd (ASX: HM1)

This is a listed investment company (LIC) that has a number of fund managers and investment professionals who contribute investment picks for free. Some of the fund managers are core managers who provide continuing portfolio picks, while a minority of the portfolio is based on picks at an annual investment conference.

The portfolio is full of international shares, so Australian investors are getting diversification with this investment, while also getting an incredible dividend yield.

Hearts and Minds has indicated an intention to increase its half-yearly dividend by 0.5 cents per share. That means the business could pay an annual dividend per share of 20.5 cents in the next 12 months. At the time of writing, that translates into a grossed-up dividend yield of 9.8%, including franking credits.

Its portfolio has returned an average of 10.25% per annum since inception in November 2018 – that’s high enough to pay a good dividend.  

Centuria Office REIT (ASX: COF)

Another ASX share that could be undervalued is this real estate investment trust (REIT) which owns office buildings across a number of markets, giving it diversification.

The business is certainly facing headwinds like work from home and a slowing economy, but it’s priced too cheaply in my opinion considering how much rental income it’s generating.

The ASX share expects to generate funds from operations (FFO) – net rental profit of 11.1 cents per security in FY26 and pay a distribution per security of 10.1 cents. That means it’s trading at just 8x its FY26’s rental profit with a FY26 distribution yield of 11.5%.

The fund manager of Centuria Office REIT, Belinda Cheung, explained the positive long-term outlook for the ASX share after its FY26 third-quarter update:               

Looking ahead, we maintain an optimistic outlook for the Australia metropolitan office markets across the medium term. Diminishing forecast supply has been further impacted by rising rates and inflation and is expected to amplify the significant disconnect between replacement costs and current valuations. The widening gap of economic rents to prevailing market rents not only prohibits feasible office development but provides ample room for current market rents to continue to grow and underpin future valuations, reinforcing the relative value of existing high-quality, well-located office assets.

The post 2 ASX shares with dividend yields above 9.5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With lots of ASX shares to choose from on the Australian market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you. 

Three top ASX shares that leading brokers have named as buys this week are outlined below. Let’s see why they are bullish on them.

ARB Corporation Ltd (ASX: ARB)

According to a note out of Morgans, its analysts have upgraded this 4×4 accessories company’s shares to a buy rating with a $22.35 price target. Morgans made the move in response to positive new vehicle sales during the month of June. This could be good news for ARB because it has a history of outperforming the market with its aftermarket sales. And while it has trimmed its earnings estimates slightly for FY 2026, it has boosted its medium-term forecasts. This partly reflects easing supply constraints for Toyota vehicles. Combined with significant share price weakness this year, Morgans thinks now could be a good time to invest. The ARB share price last traded at $18.03.

Mesoblast Ltd (ASX: MSB)

A note out of Bell Potter reveals that its analysts have put a buy rating and $4.45 price target on this biotechnology company’s shares. This follows the release of a fourth-quarter update which revealed 20% quarter on quarter revenue growth. Bell Potter believes its full year performance represents an outstanding result considering its Ryoncil product was launched from a standing start in April 2025 and prior to broad reimbursement availability. The broker notes that commercial adoption has been exceptionally strong and has continued to grow as barriers to adoption have fallen away. Looking ahead, the broker expects Ryoncil’s strong growth to continue. Bell Potter is also optimistic on Mesoblast’s Rexlemestrocel-L product. The Mesoblast share price was fetching $2.35 at Monday’s close.

Sigma Healthcare Ltd (ASX: SIG)

Analysts at Macquarie have retained their outperform rating and $3.50 price target on this pharmacy chain operator’s shares. According to the note, the broker has been looking at the consumer sector and continues to rate Sigma Healthcare as a preferred pick. Macquarie is bullish on the company due to its attractive valuation and exposure to structural tailwinds that are supporting the pharmacy industry. The Sigma Healthcare share price last traded at $2.92. 

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Why Mesoblast shares could double in value
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation and Macquarie Group. The Motley Fool Australia has recommended ARB Corporation and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.