Investing for solid dividend yields can be a great strategy for some investors, and if you’re looking to follow this strategy, selecting companies with solid underlying businesses and a track record of performance is a good place to start.

Companies in infrastructure or with infrastructure-like qualities can be good investments as they tend to have businesses with a high barrier to entry and arguably good visibility of future revenues.

I’ve selected three companies which are currently paying dividend yields of better than 5% for you to consider.

AGL Energy Ltd (ASX: AGL)

AGL is one of the country’s major energy suppliers, with a market position which ensures it is likely to have a steady stream of income over the long-term barring unforeseen events.

That’s not to say the business does not have its challenges, with investing in the energy transition and managing energy supply and pricing all factoring into the company’s financial performance.

The stock is down 13.9% over the past year to $8.42.

Managing Director Damien Nicks told a recent conference that the company was expecting growing demand from the data centre sector in coming years as the emerging industry’s need for power doubled from current levels.

Mr Nicks said during the update that AGL expected underlying net profit to be $610-$680 million, tigthening the guidance from $580-$680 million.

AGL is currently paying a 5.81% trailing dividend yield with its next dividend payment scheduled for September.

APA Group Ltd (ASX: APA)

Another energy company here but this time in the gas pipeline game.

APA has performed quite well from a share price standpoint over the past year, adding 32.3% to be changing hands for $10.77.

That level is just higher than Macquarie’s price target for the company, which it recently pegged at $10.41.

Encouragingly Macquarie expects the APA dividend yield to grow from 5.7% this year to 5.9% by FY28.

One of the drivers for the company, Macquarie said, is the growth in data centre demand for power, and from the retirement of the nation’s coal fleet.

Macquarie said the federal gas reservation policy also creates incentives for energy companies to develop new gas fields, while adding that APA has improving balance sheet capacity.

Stockland (ASX: SGP)

Morgan Stanley analysts think there is upside to be had in Stockland’s share price, with a price target of $4.90 compared with the current price of $4.32.

The broker thinks there could be some residential settlements headwinds for the property development company following recent interest rate increases and changes to tax laws in the Federal Budget.

They say Stockland has in the past mitigated downturns with land selldowns or joint ventures, but say this might be far off at this stage.

They said:

We see limited scope for material land profits in FY27, as Kogarah/Waterloo/DCs all still require detailed planning, power, and/or tenant commitments. However, the FY28+ pipeline looks robust and could drive a higher weighting to development profits vs traditional resi over the next cycle.

Morgna Stanley is forecasting the Stockland dividend to stay steady at 25.2 cents out to FY28, which at the current share price is a 5.8% dividend yield.

The post Buy these 3 blue-chip shares for better than 5% dividend yields appeared first on The Motley Fool Australia.

More reading

• How to build passive income for life from the ASX share market
• 7 ASX 200 shares going ex-dividend today
• 5 things to watch on the ASX 200 on Monday
• Where should I invest inside SMSFs instead of property?
• How to invest $500, $5,000, and $50,000 on the ASX

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In my view, Future Generation Australia Ltd (ASX: FGX) is one of the most reliable ASX dividend stocks available to Aussies.

It may not be as famous as Commonwealth Bank of Australia (ASX: CBA) or BHP Group Ltd (ASX: BHP), but I think it’s a better pick for both reliability and dividend yield.

Future Generation Australia is a listed investment company (LIC) with a big difference. Instead of a typical arrangement where investors pay management fees to a fund manager, this LIC charges no fees (including no performance fees). Instead, it donates 1% of net assets each year to youth-focused charities.

The LIC is invested in the funds of 16 different fund managers, giving it excellent diversification. Future Generation Australia gives exposure to more than 430 underlying shares across different sectors, meaning it’s significantly more diversified than the S&P/ASX 200 Index (ASX: XJO)

It also gives access to variety of companies across different market capitalisations – at the end of May, more than 19% of the portfolio came from outside the S&P/ASX 300 Index (ASX: XKO).

Let’s get into what makes it such an appealing choice for dividends.

Reliability

Both CBA and BHP have given their shareholders dividend cuts this decade, so they haven’t been very reliable, despite having reputations as Australia’s biggest and bluest of ASX blue-chip shares.

As a LIC, Future Generation Australia is capable of smoothing out its dividends because it can build up its profit reserve with investment gains during positive years, allowing it to pay a rising dividend even in more difficult years.

It has increased its annual dividend per share each year since 2015 – that’s more than a decade of consistent dividend growth.

The ASX dividend stock has built up a profit reserve of 41.8 cents per share as of May 2026 – it could keep funding the same size dividend for more than five years.

Dividend yield

Future Generation Australia is attractive not just for its reliability but also for its strong dividend yield.

In 2025, the business paid an annual dividend per share of 7.2 cents. That translates into a grossed-up dividend yield of 7.6%, including franking credits.

But, I’m expecting the business to hike its payout in 2026 to 7.4 cents per share, which would equate to a grossed-up dividend yield of 7.8%, including franking credits.

It’s hard to find another ASX dividend stock that offers a good a dividend yield as that, and has increased the dividend for as many years in a row.

Is this a good time to invest?

We can already see that the business offers compelling dividend income.

The business is trading fairly closely to its net tangible assets (NTA) – I’d prefer to buy when it’s trading at a discount, but today’s price is still solid, in my view.

With $1,000, an investor could buy 735 shares of this appealing LIC. Plus, it’s providing a great philanthropic service.

The post $1,000 buys 735 shares in an incredibly reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• How much is needed in superannuation to target an $11,000 monthly passive income?
• 295,148 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• How much is needed in superannuation to target a $9,000 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to copper, many investors will turn to Rio Tinto Ltd (ASX: RIO) shares.

That makes sense, the mining giant owns Oyu Tolgoi in Mongolia, which is one of the largest known copper-gold deposits in the world.

But there’s another name that could be worth considering if you’re looking for copper exposure according to Bell Potter.

Which ASX copper share?

The share that Bell Potter is recommending to investors is AIC Mines Ltd (ASX: A1M).

It is a copper production and exploration company focused on the 100%-owned Eloise Copper Project (ECP) in Queensland.

Bell Potter is feeling positive following a site visit to the Eloise copper mine, which is undergoing an expansion to its production capacity. It said:

We attended a recent site visit to A1M’s 100%-owned Eloise copper mine in QLD. It is currently being expanded from nameplate of 725ktpa to nameplate of 1.1Mtpa. The expansion is targeting to lift Eloise’s copper production from ~12-13ktpa to ~20ktpa. The expansion commenced during the September quarter 2025, with a scheduled 18- month construction period targeting commissioning in the December quarter 2026, for which it remains on schedule.

The good news is that Bell Potter believes the expansion is on target. It explains:

Based on our observations at the site visit, we are comfortable with the view that the Eloise mine expansion is on schedule and mill commissioning will commence in the December quarter 2026. Major components of the process plant are on site, including the recent installation of the ball mill onto its foundations, marking a key critical path milestone. Structural steel erection is largely complete with the crushing circuit 95% mechanically complete and dry commissioning planned for July.

Integration of the new crushing and grinding circuit with the existing circuit is well progressed, with 8 of 9 tie-ins complete. Much of the plant is sized for 1.5Mtpa throughput, providing optionality for a low-cost staged expansion later in Eloise’s mine life.

Time to buy

According to the note, the broker has retained its buy rating on the ASX copper share with an improved price target of $1.00.

Based on its current share price of 70.5 cents, this implies potential upside of approximately 42% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

EPS changes with this update are: FY26: -1%, FY27: +5% and FY28: +8%, on a less conservative ramp-up schedule. A1M represents leveraged copper exposure via its Eloise Copper Project with a clear, organic growth strategy being advanced. We retain our Buy recommendation and lift our NPV-based target price to $1.00/sh.

The post Forget Rio Tinto and buy this ASX copper share appeared first on The Motley Fool Australia.

More reading

• Why Rio Tinto shares could be a smart long-term buy
• Want a pay rise? These ASX dividend shares keep delivering
• If I’d invested $5,000 in Rio Tinto shares 12 months ago, guess what I’d have now!
• 5 things to watch on the ASX 200 on Thursday
• Why Aurelia Metals, Beach Energy, IAG, and Rio Tinto shares are falling 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 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.