2 High-Dividend ASX Stocks Worth Owning
If you’re an investor who loves the comfort of steady income without compromising on quality, dividend stocks are your best friends. They provide cash returns even when the market moves sideways — a vital cushion in volatile times.
On the Australian Securities Exchange (ASX), there are plenty of dividend-paying companies. But right now, two names stand out for their strong fundamentals and reliable shareholder returns: Helia Group Ltd (ASX: HLI) and Woodside Energy Group Ltd (ASX: WDS).
While both operate in completely different industries — insurance and energy — they share a key trait: the ability to turn robust cashflows into rewarding dividends. Let’s explore what makes each one worth a closer look.
1) Helia Group Ltd (ASX: HLI) — Outsized Yield, Insurance Cash Flow, and Special Payouts
The Quick Thesis
Helia Group is a unique financial services business that plays a vital role in Australia’s home-finance ecosystem. The company provides lenders mortgage insurance (LMI) and related risk-management products, helping banks and homebuyers navigate the mortgage market safely.
For income-seeking investors, Helia is currently one of the most attractive dividend plays on the ASX. It combines strong profits, excess capital, and a history of special payouts, delivering yields that most financial stocks can’t match.
Latest Numbers That Matter
In the first half of 2025, Helia reported some impressive results:
- Net Profit After Tax (NPAT): $133.7 million — a solid improvement from the same period last year.
- Dividends: The board declared a fully franked interim ordinary dividend of 16.0 cents per share and an unfranked special dividend of 27.0 cents per share, both payable in September 2025.
This means investors are looking at a substantial capital return — combining a regular income stream with a special payout that significantly lifts the total yield for the year.
Why Investors Care
- A Huge Near-Term Yield Boost
The special dividend alone elevates Helia’s annual yield to standout levels. While such payouts aren’t guaranteed every year, they highlight management’s willingness to reward shareholders when excess capital is available. - Earnings Strength and Resilience
Helia’s profitability is anchored in its underwriting business and service fees, which remain stable even as housing markets fluctuate. Its half-year report showed both statutory and underlying profits increasing, reflecting strong operational discipline. - Smart Capital Management
With a healthy balance sheet and surplus capital, Helia has multiple options — returning cash, buying back shares, or investing in growth. The company’s recent dividend decisions suggest a management team focused on shareholder value rather than hoarding cash.
Why Helia Fits Dividend Portfolios
For investors, Helia’s appeal lies in its combination of yield and prudence. It doesn’t promise growth fireworks but offers a consistent cash return story backed by genuine profits.
That said, one should view the special dividends as opportunistic rather than permanent. Housing and credit cycles can influence future distributions, so monitoring earnings sustainability is key.
Still, in a market where many financial stocks yield modest returns, Helia stands out as a genuine high-yield opportunity with proven capital discipline.
2) Woodside Energy Group Ltd (ASX: WDS) — Energy Cashflows That Power Big Dividends
The Quick Thesis
Woodside Energy is Australia’s largest listed oil and gas producer and one of the major names in global energy markets. Its scale and cash-generating ability make it a core income stock for investors who don’t mind some exposure to commodity cycles.
When energy prices are favorable, Woodside turns its production into billions in free cash flow — much of which is returned to shareholders through dividends and buybacks.
Latest Numbers That Matter
In its half-year results to June 2025, Woodside reported:
- Net Profit After Tax: $2.07 billion
- Operating Cash Flow: $4.77 billion
- Dividend Per Share: $0.82
- Current Dividend Yield: 6.28%
Even with slightly lower commodity prices compared to the previous year, these figures show just how powerful Woodside’s cash engine remains.
Management did trim the interim dividend — a pragmatic move reflecting weaker oil and gas prices and ongoing project expenses — but the yield still remains among the most attractive in the energy sector.
Why Investors Care
- Strong, Reliable Cash Generation
Woodside’s operations span multiple producing assets, meaning even moderate prices for oil and gas can result in multi-billion-dollar cashflows. That consistency underpins its ability to pay out meaningful dividends through the cycle. - Upside During Commodity Booms
When global energy markets tighten, Woodside benefits almost immediately. Rising oil and LNG prices translate into higher profits, which often flow back to shareholders via higher dividends or buybacks. This makes it a compelling pick for income investors who also want upside potential. - Strategic Project Portfolio
The company continues to expand and optimise its global portfolio. Through joint ventures, asset sales, and partnerships, Woodside can manage risks and accelerate returns from major projects. These moves give it both operational flexibility and capital efficiency — crucial traits for sustaining dividends in a cyclical industry.
Why Woodside Belongs in an Income Portfolio
Woodside represents the long-term, durable side of dividend investing. Its payout policy is flexible, adjusting to commodity trends, but its underlying business remains robust.
If you’re comfortable with some volatility, Woodside can serve as a core income stock — one that provides steady cash returns in normal conditions and potentially outsized rewards when energy markets are strong.
How to Think About Owning These Two Dividend Stocks
Helia Group (HLI) and Woodside Energy (WDS) may operate in very different sectors, but together, they can complement each other beautifully in an income portfolio.
- Helia Group: Ideal for those seeking a near-term income boost. Its special dividends and high payout ratios make it a powerful yield enhancer, though investors should watch for sustainability and market cycles.
- Woodside Energy: A long-term dividend anchor, delivering solid income backed by vast cashflows and exposure to global energy dynamics. It offers durability and upside — but requires tolerance for periodic dividend adjustments.
This combination provides balance: Helia gives you high yield today, while Woodside offers reliable cashflow over time. Together, they can help stabilise returns while keeping some exposure to economic and commodity cycles.
Balance Yield with Durability?
High-dividend investing isn’t just about chasing the biggest yield — it’s about finding companies that can keep paying it.
Helia and Woodside do this in different ways:
- Helia channels insurance-driven profits and excess capital into shareholder payouts.
- Woodside converts energy production into steady, long-term dividends.
For investors seeking income that feels both rewarding and sustainable, these two ASX names deserve attention. By blending Helia’s opportunistic yield with Woodside’s scale-driven stability, you can enjoy the best of both worlds — consistent cash returns and long-term dividend resilience.
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