2 Dividend Stocks That Raised Payouts in 2025

For dividend investors, few things are more satisfying than seeing steady income and a growing payout. In a year when global markets saw volatility, inflationary pressures, and changing interest rate trends, some Australian companies proved their resilience by rewarding shareholders with higher dividends.

Two standout ASX-listed names—Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS)—not only maintained strong financial performance in 2025 but also raised their shareholder payouts. These companies showed that disciplined management, strong cash flows, and sustainable business models remain the backbone of long-term dividend success.

Let’s take a closer look at how both stocks strengthened their dividend profiles this year and why they continue to be investor favourites for dependable income and growth potential.

Wesfarmers Ltd (ASX: WES): Special Dividends Signal Strength

Wesfarmers is no stranger to rewarding its shareholders. In 2025, the Perth-based conglomerate made headlines by announcing a fully franked special dividend of $0.40 per share along with a capital return of $1.10 per security—a bold move reflecting confidence in its balance sheet and future growth prospects.

This was in addition to its regular dividends, which rose to $2.06 per share (fully franked) for FY2025, offering investors an attractive dividend yield of around 2.4% at recent prices. For income seekers, this combination of regular and special payouts positioned Wesfarmers as one of the most reliable dividend stocks on the ASX in 2025.

Strong Financial Backbone

Wesfarmers reported revenue of $45.58 billion, marking a 3.5% increase year-over-year, while net profit after tax surged to $2.93 billion. These numbers underscore the company’s operational strength across its diverse portfolio—spanning retail (Bunnings, Kmart, Officeworks), chemicals, fertilisers, and resources.

The company’s consistent cash generation has long been one of its biggest assets. By maintaining low levels of debt and generating strong free cash flow, Wesfarmers has been able to reinvest in its businesses while still returning significant capital to shareholders.

Strategic and Sustainable

The decision to issue special dividends and capital returns wasn’t just a one-off celebration—it was a calculated move backed by solid fundamentals. Management’s capital allocation strategy aims to reward shareholders while ensuring long-term reinvestment in areas like renewable energy, e-commerce expansion, and supply chain optimisation.

With a diversified earnings base and a strong focus on innovation, Wesfarmers remains well-positioned to continue growing its dividends sustainably over the coming years.

Telstra Group Ltd (ASX: TLS): Steady Growth from a Telecom Giant

Telecommunications giant Telstra Group Ltd also made headlines in 2025 by giving shareholders a long-awaited reward: a 5.56% increase in its dividend, bringing the total payout to $0.19 per share annually, fully franked.

At a time when global telecom operators faced mixed financial results due to inflation and rising infrastructure costs, Telstra’s ability to lift dividends signaled financial health and efficient management. The company’s dividend yield remained close to 3.9%, reinforcing its reputation as one of the most dependable income stocks on the ASX.

Healthy Financial Performance

Telstra’s FY2025 revenue grew by 0.86% to $23.13 billion, while earnings before tax soared 33.9% to $2.17 billion, driven by cost control measures, network efficiencies, and growth in enterprise and digital services.

Strong operating cash flows gave Telstra ample headroom to support both dividends and infrastructure investment—particularly in its 5G and fibre network rollouts, which continue to expand across Australia.

Strategic Moves for Future Growth

Telstra’s management continues to focus on modernising the business model—shifting from traditional telecom revenues to digital and enterprise services. Initiatives such as expanding its 5G coverage, investing in Internet of Things (IoT) platforms, and offering cloud and cybersecurity solutions have begun to pay off.

Moreover, Telstra’s scale, market leadership, and consistent profitability give it a defensive edge during uncertain times. Its fully franked dividends remain a key attraction for Australian investors, especially retirees and income-focused portfolios seeking stable, tax-effective returns.

Why These Stocks Are Attractive Dividend Plays

Both Wesfarmers and Telstra offer compelling cases for long-term dividend investors. Here’s why they continue to shine:

1. Robust Cash Flows

Both companies deliver strong operating cash flows that comfortably cover their dividend commitments. This financial cushion ensures that dividend increases are sustainable, not merely reactionary.

2. Proven Dividend Growth

In 2025, both firms raised their payouts—Wesfarmers through special and regular dividends, and Telstra via a consistent annual increase. This reflects management’s confidence in earnings stability and future growth potential.

3. Defensive and Diversified Businesses

Wesfarmers benefits from exposure to multiple industries, including retail, chemicals, and resources, which helps buffer against sector downturns. Telstra, on the other hand, dominates Australia’s telecom landscape—a sector that enjoys predictable demand, even in tough economic times.

4. Investor-Friendly Policies

Both companies actively return capital to shareholders through dividends, special payouts, and capital returns. The inclusion of fully franked dividends enhances after-tax returns for Australian investors, making them even more appealing for income portfolios.

5. Strong Market Presence and Future Focus

Wesfarmers’ diversification across essential sectors and Telstra’s focus on digital transformation and 5G expansion create sustainable long-term growth opportunities. This blend of stability and forward-thinking investment positions both companies to continue delivering returns in the years ahead.

Final Thoughts

In a year marked by economic uncertainty and global volatility, Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS) stood out for their resilience and shareholder focus. Both companies demonstrated that consistent cash generation and strategic reinvestment remain the keys to sustainable dividend growth.

For investors seeking dependable income with room for capital appreciation, these two ASX giants tick all the boxes.

Telstra, meanwhile, continues to evolve with technology trends while providing steady, fully franked payouts backed by robust cash flows.

Wesfarmers impresses with its disciplined capital management and ability to deliver both regular and special dividends.