Investing in the best dividend stocks ASX has to offer is a proven strategy for generating passive income and building long-term wealth. The ASX200 is home to several high-quality companies that consistently reward shareholders with stable and growing dividends. For investors seeking reliable returns, selecting well-established dividend-paying stocks can provide financial security and steady cash flow over time. In this article, we’ll explore two standout ASX200 stocks that have demonstrated strong dividend performance, making them excellent choices for those looking to secure passive income for the future.

2 ASX dividend stocks to keep an eye on for the long term are:

Eagers Automotive Limited (ASX: APE)

Eagers Automotive Ltd. engages in the management of automotive dealerships. Its activities include the sale of new and used vehicles, distribution and sale of parts, and accessories, repair and servicing of vehicles, provision of extended warranties, facilitation of finance and leasing in respect of motor vehicles, and the ownership of property and investments. It operates through the following segments: Car Retailing, Truck Retailing, Property, and Investment. The Car Retailing segment offers a range of automotive products and services, including new, used, maintenance and repair services, parts, extended service contracts, brokerage, and protection for vehicles. The Truck Retailing segment provides products and services, including new trucks, used, maintenance and repair services, parts, extended service contracts, protection, and other aftermarket products. The Property segment is the acquisition of commercial properties use as facility premises for its motor dealership operations. The Investment segment includes the investments in DealerMotive Limited, Automotive Holdings Group Limited, Smartgroup Corporation Limited, and Dealercell Holdings Pty Limited. The company was founded by Edward Eager and Frederick Eager in 1913 and is headquartered in Brisbane, Australia.

Financials:

The company has faced a period of earnings stagnation in recent years, consistently hovering around the $300 million threshold. However, it is important to highlight that its long-term growth trajectory remains exceptional, having successfully reversed a loss of $142 million in 2019 and annual profits of under $100 million in the preceding years to achieve substantial earnings growth in subsequent years. During this same period, the company’s revenues have surged impressively, rising from $5.8 billion in 2019 to $9.85 billion in 2023, with recent data indicating continued record highs into 2024. Furthermore, the company’s financial health has markedly improved, as evidenced by an increase in its asset base from $4.86 billion in 2019 to $4.95 billion in 2023, alongside a significant reduction in liabilities from $4.04 billion to $3.64 billion. This has led to a notable enhancement in the book value for shareholders, reflected in the rise of book value per share from $3.16 in 2019 to a record $4.94 in 2023.

Dividend Profile:

The company’s commitment to enhancing distribution growth for its shareholders, evidenced by a consistent and substantial rise in annual dividend payments from $0.25 per share in 2019 to $0.74 per share in 2023. This represents an impressive increase of nearly 300% over a five-year span. Consequently, the yield for shareholders has markedly improved, escalating from 2.47% in 2019 to 5.11% in 2023, and currently approaching its peak at 6.49%.

Outlook:

The recent earnings performance of the company has been significantly hindered by substantial interest expenses. Although recent statements from the Governor of the Reserve Bank of Australia (RBA) suggest that immediate interest rate reductions are unlikely in the near term, it was noted that any indications of declining inflation or decreased market activity could prompt such cuts. These potential rate reductions are anticipated to yield considerable cost savings for the company in the long run, with each 25 basis point (bps) decrease is projected to save approximately $6 million. Additionally, the company’s emphasis on improved inventory management is expected to enhance profit margins, as a reduction of just one day in its operating cycle could result in cost savings of around $3 million.

Woodside Energy Group Limited (ASX: WDS)

Woodside Energy Group Ltd. engages in the exploration, evaluation, development, and production of hydrocarbon and oil and gas properties. It operates through the following segments: North West Shelf, Pluto, Australia Oil, Wheatstone, Development, and Others. The North West Shelf segment produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas and crude oil from the North West Shelf ventures. The Pluto segment develops liquefied natural gas in assigned permit areas. The Australia Oil segment is involved in the exploration, evaluation, development, production and sale of crude oil in assigned permit areas. The Wheatstone segment is involved in the exploration, evaluation, and development of liquefied natural gas, pipeline natural gas, and condensate. The Development segment includes the exploration of gas resources in Scarborough, Sangomar, and other project areas. The Other segment is composed of the activities undertaken by exploration, international and Sunrise Business Units. The company was founded on July 26, 1954 and is headquartered in Perth, Australia.

Recent Developments:

On February 17, 2025, Woodside Energy Group Limited (ASX: WDS) reported its year-end 2024 reserves and resources. The company disclosed remaining proved (1P) reserves of 1,975.7 million barrels of oil equivalent (MMboe), proved plus probable (2P) reserves of 3,092.2 MMboe, and 2C contingent resources totaling 5,869.7 MMboe.

Q4’24 Highlights:

Woodside Energy Group Limited (ASX: WDS) recently released its financial results for the fourth quarter of 2024, which ended on December 31, 2024.

The company achieved record full-year production of 194 MMboe, supported by strong output from the Sangomar field, which produced 75 Mboe/day during the quarter. However, quarterly production declined by 3% from Q3 2024 to 51.4 MMboe (559 Mboe/day), primarily due to lower seasonal demand.

Additionally, Woodside completed the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture to JERA for approximately US$1.4 billion.

Dividend Profile:

The company has exhibited earnings volatility, impacting the stability of its distributions and yields. However, its flexibility in payout structures is noteworthy, as it has prioritized dividend payments even during periods of losses. During profitable years, distributions have remained strong, reinforcing investor confidence. Notably, dividend payments have grown significantly over the long term, increasing from $1.36 per share in 2019 to $2.16 per share in 2023—a remarkable 58% rise. While yield fluctuations have occurred, the company has maintained an attractive average yield of approximately 8% over the past three years, currently standing at 8.41%, making it a compelling option for income-focused investors.

Outlook:

Woodside’s strategic portfolio evolution reflects a clear focus on optimizing core LNG assets and enhancing operational efficiency. The recent asset swap with Chevron has streamlined its Australian portfolio by consolidating its position in the North West Shelf (NWS) Project while divesting its stakes in Wheatstone and Julimar-Brunello. This transaction is expected to boost cash flow and strengthen key joint ventures, particularly in carbon capture and decarbonization at the Karratha Gas Plant. Additionally, Woodside has made significant progress on its Louisiana LNG project, securing an EPC contract with Bechtel and targeting a final investment decision (FID) in early 2025. With full permitting in place and competitive pricing for its three-train development, the Louisiana LNG project positions Woodside to capitalize on the growing global demand for LNG. These strategic moves enhance long-term value creation and reinforce Woodside’s leadership in the LNG sector.

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