2 High Dividend ASX Stocks Worth Owning

In a market often driven by short-term hype and growth speculation, some investors prefer the stability of steady income and dependable returns. Dividend-paying stocks remain one of the best ways to build long-term wealth—especially when inflation and global uncertainty make capital preservation as important as growth.

Among the many dividend opportunities on the Australian Securities Exchange (ASX), two names consistently stand out for their reliability, size, and strength: National Australia Bank (ASX: NAB) and BHP Group Ltd (ASX: BHP).

These two ASX giants not only offer attractive dividend yields but also bring solid earnings foundations and diversified operations that support long-term sustainability. For income-focused investors in 2025, NAB and BHP represent a powerful combination of yield, resilience, and quality.

National Australia Bank (ASX: NAB): Consistent Dividends and Earnings Strength

When it comes to income reliability, few names on the ASX are as trusted as National Australia Bank. With over 160 years of financial history, NAB has weathered economic cycles, market volatility, and regulatory changes while maintaining its commitment to shareholder returns.

In FY25, NAB declared a fully franked interim dividend of 85 cents and a final dividend of 85 cents per share, taking the full-year payout to $1.70. At a current share price of around $44, this translates to a dividend yield of approximately 3.9%, making it a dependable source of income for investors.

The bank’s payout ratio, sitting around 90–100%, reflects management’s focus on returning profits to shareholders while maintaining capital strength. Unlike many global banks that reduced dividends during recent financial tightening, NAB has managed to sustain payouts—a sign of robust earnings and conservative financial management.

NAB’s core earnings have remained stable thanks to an improvement in net interest margins (NIMs) and solid credit quality. Rising interest rates have supported stronger margins on lending operations, while the bank’s loan portfolio remains resilient, showing limited exposure to bad debts or defaults.

Beyond traditional retail banking, NAB’s diversified business model—spanning institutional banking, business lending, and wealth management—provides additional earnings stability. This diversity helps cushion the bank from downturns in any single segment and ensures consistent cash flow generation.

Furthermore, NAB’s digital transformation strategy continues to enhance customer experience and operational efficiency. Through new mobile banking platforms, automation, and technology integration, the bank is reducing costs and positioning itself for long-term competitiveness.

Regulatory compliance and capital adequacy remain strong as well. NAB continues to meet Australian Prudential Regulation Authority (APRA) requirements comfortably, ensuring it can maintain its dividend policy without risking financial stability.

For dividend investors, NAB represents what many seek in a financial stock: steady earnings, prudent management, and reliable income. Its track record of consistency through economic ups and downs gives shareholders confidence that dividends are not only sustainable but likely to grow gradually over time.

BHP Group Ltd (ASX: BHP): Dividend Powerhouse With Commodity Exposure

While NAB’s strength lies in financial services, BHP Group Ltd offers investors exposure to a completely different engine of dividend power: the global commodities market. As one of the world’s largest diversified mining companies, BHP generates immense cash flow from essential raw materials like iron ore, copper, coal, and fertilizer minerals—all crucial for global infrastructure, manufacturing, and clean energy technologies.

In FY25, BHP declared a final dividend of US$0.60 per share, bringing the full-year dividend to US$1.10 per share. With a 55% payout ratio, the company balances rewarding shareholders with reinvesting in growth and maintaining balance sheet flexibility. Depending on currency movements and franking credits, BHP’s dividend yield currently ranges between 3.7% and 5.6%, placing it among the highest-yielding blue-chip stocks on the ASX.

What truly sets BHP apart is its ability to maintain dividend payments even during periods of commodity price weakness. The company’s diversified portfolio ensures that when one segment underperforms, another often compensates. For example, iron ore remains a cash cow, while copper demand continues to rise amid the electric vehicle and renewable energy boom.

Financially, BHP remains in excellent shape. In FY25, the company reported net income of $13.93 billion, up 15.56% year-over-year, reflecting operational efficiency and healthy commodity prices. BHP’s balance sheet strength provides flexibility for future acquisitions, exploration projects, and shareholder returns through buybacks or special dividends.

Another advantage for investors is currency diversification. With operations and sales spanning Australia, South America, and Asia, BHP’s earnings benefit from movements in global currencies—helping protect shareholders from local market risks.

Moreover, BHP’s exposure to inflation-sensitive commodities makes it a natural hedge in uncertain economic conditions. As global economies transition toward cleaner energy, demand for copper, nickel, and potash is expected to rise significantly—offering BHP strong long-term growth potential even beyond traditional mining cycles.

For investors seeking dividend income combined with commodity exposure, BHP offers both yield and growth. Its disciplined capital allocation, focus on shareholder returns, and industry-leading operational standards make it a dividend stock built to last.

Why These Stocks Are Worth Owning

Both NAB and BHP occupy different sectors but share the same foundational strengths—solid cash flows, disciplined management, and commitment to rewarding shareholders. Together, they create a balanced dividend portfolio that combines the stability of the financial sector with the cyclical upside of the resources industry.

Here’s why they stand out in 2025:

1. Reliable Income: NAB delivers steady, fully franked dividends backed by predictable earnings, while BHP provides high, partly franked dividends tied to global commodity performance.
2. Strong Fundamentals: Both companies boast healthy balance sheets, strong free cash flow generation, and management teams with proven track records of capital discipline.
3. Diversification Benefits: NAB provides exposure to Australia’s banking and financial system, while BHP adds global commodity exposure—creating a diversified income stream that performs across different economic conditions.
4. Resilience in Uncertainty: In a world of inflation risks, interest rate fluctuations, and geopolitical instability, these companies’ scale and operational diversity make them dependable performers.

Final Thoughts

For investors seeking long-term dividend reliability and defensive growth, National Australia Bank and BHP Group stand out as two of the best high-dividend stocks on the ASX in 2025.

NAB offers steady income from financial services, supported by strong capital management and digital transformation, while BHP provides global diversification and commodity-driven growth potential. Together, they form a well-balanced foundation for an income-focused portfolio.

Both companies have proven their ability to adapt, perform, and deliver shareholder value through changing economic environments. As Australia’s markets evolve, these dividend powerhouses remain must-own stocks for investors who value both security and consistent returns.

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