Top 10 ASX dividend stocks to watch in March 2025
Stocks yielding a reasonable dividend often make solid additions to the portfolio. These shares have been selected based on the highest-yielding dividend stocks with a dividend cover ratio of 1 or higher.
ASX dividend stocks: What you need to know
When buying shares, investors typically benefit in two ways: from capital gains due to an increase in share price, and from profits paid out in the form of dividends.
Dividend stock investors view a stock’s dividend yield as a key measure of a stock’s value. It offers an insight into how great the return on an investment will be. To calculate the dividend yield, investors simply divide the annual dividend paid by the share price.
To begin initial research, IG offers market screeners to filter out ASX stocks with the highest dividend yields.
Investors should then inspect an individual company’s financial status to determine the future viability of its dividend yield. At a minimum, this should include its historical profit generation, debt levels, and prior dividend history.
Amongst the screening criteria we use are:
- Dividend yield
- Cashflow
- Dividend growth over the last five years
- Market price correlation (beta) based on monthly price movements over the past five years
- Outlook for the next 12 months based on a slowing economy and interest rates peaking
How to trade or invest in ASX dividend stocks
1. Learn more about ASX dividend stocks
2. Find out how to trade or invest in ASX dividend stocks
3. Open an account
4. Place your trade
You can open a position on ASX dividend stocks with us either through share trading or CFD trading. Share trading means that you take direct ownership of the stock.1 By comparison, derivatives trading – such as CFD trading – allows you to take a position on the price movement of a company’s shares without actually taking ownership of them.
For a complete breakdown of the benefits and drawbacks of each strategy, please click here.
ASX dividend stocks: further important information to consider
Many investors add ASX dividend stocks to their portfolios for the long term. While this is a sound investment strategy, it also means that any errors are correspondingly magnified.
One key thing to note is that the below ‘top 10’ dividend stocks are not the highest yielding. These are stocks that appear to have a decent chance of continuing to pay out dividends, although there’s no guarantee of future success. Investors can often have higher success with lower-yielding shares of growing businesses rather than get caught in a yield trap.
Avoiding yield traps
A ‘yield trap’ is a stock with a high yield underpinned by poor financials. If a company issues a higher-than-normal dividend or its share price falls quickly, it can appear to be high-yielding. However, the yield is calculated using past figures that do not account for very recent performance.
Many investors are caught out by the siren’s song of ultra-high-yield percentages without considering the whole picture.
Often yielding stocks either have low growth potential because management pays out all the profit in dividends, or else they are cyclical stocks such as mining companies that can generate enormous amounts of cash and pay dividends for four years and then generate almost zero cash on the down cycle.
Accordingly, higher-yielding dividend stocks usually require more active management, while lower-yielding ones come closer to truly passive income. Similarly, compounding by reinvesting dividends can exponentially increase returns.
Diversifying to spread risk
It’s also worth noting that many ASX dividend stocks are blue chips with very low chances of the outsized capital gains that ASX growth stocks can deliver. It can make sense to have a mixed portfolio that offers potentially bigger returns in exchange for a little safety.
Finally, it’s important to consider the concentration or diversification of a company’s interests and revenue. Companies with the most resilient dividends are often the ones with diversified interests in their sector.
And investors should take care to spread their money across multiple sectors, to further reduce risk. Piling all of one’s capital into mining stocks might give a stellar return right now, but usually at the cost of a good night's sleep.
Remember, past performance is not an indicator of future returns.
Top 10 ASX dividend stocks to watch
These shares have been selected because they are the highest-yielding dividend stocks with a dividend cover ratio of 1 or above in March 2025. While they may not necessarily represent the best long-term growth investments, they have garnered significant investor interest.
McPherson’s Ltd (Dividend Yield: 19.6%)
McPherson’s Limited is an Australian company specialising in the marketing and distribution of health, wellness, beauty, and household consumer products.
With a portfolio that includes well-known brands such as Manicare, Lady Jayne, and Dr. LeWinn’s, McPherson’s has established a significant presence in the consumer goods sector. The company’s operations extend beyond Australia, reaching markets in New Zealand and Asia, thereby enhancing its brand recognition and consumer base.
In the first half of the 2025 financial year, McPherson’s reported revenue of $70.7 million from continuing operations, with $62.5 million attributed to its core brands. However, the company faced challenges, recording an underlying EBITDA of $2 million and a statutory loss of $11.4 million.
Despite these setbacks, there was a noted improvement in core brand sales during the second half of FY24, and a modest growth of 1% in FY25 sales from these brands is anticipated. The company’s commitment to increased brand investment aligns with its management strategy, focusing on transformation efforts as a key priority for FY25.
Currently, McPherson’s has a dividend yield of 19.6% with a dividend cover ratio of 2.7.
New Hope Corporation (Dividend Yield: 17.2%)
New Hope Corporation is a diversified energy company primarily engaged in coal mining, oil and gas exploration, development, production, and marketing.
With operations concentrated in Queensland and New South Wales, New Hope has established itself as a significant player in Australia’s energy sector. The company’s activities encompass exploration and production, coal handling and preparation, and logistics services, ensuring a comprehensive approach to energy supply.
Investors may find New Hope Corporation appealing due to its strategic position in the energy market, particularly in coal production, which continues to play a vital role in global energy supply. The company’s integrated operations, from extraction to logistics, provide a stable platform for potential growth and profitability, making it a stock worth monitoring.
Currently, New Hope Corporation has a dividend yield of 17.2% with a dividend cover ratio of 1.7.
Horizon Oil (Dividend Yield: 15%)
Horizon Oil is an oil and gas exploration, development, and production company with assets located in Southeast Asia and Australasia.
The company’s portfolio includes interests in producing fields in China and development projects in Papua New Guinea, positioning Horizon Oil to leverage opportunities in these resource-rich regions. Horizon Oil’s strategic focus on cost-effective production and exploration in proven hydrocarbon provinces offers potential for stable returns.
Investors might be drawn to Horizon Oil due to its diversified asset base and presence in regions with established energy markets. The company’s commitment to operational efficiency and strategic partnerships could potentially enhance its growth prospects – making it a stock to watch in the energy sector.
Currently, Horizon Oil has a dividend yield of 15% with a dividend cover ratio of 1.5.
Mitchell Services (Dividend Yield: 12.9%)
Mitchell Services is a leading provider of drilling services to the global exploration, mining, and energy industries.
Offering a comprehensive range of drilling solutions, including surface and underground drilling, the company caters to various commodities such as coal, gold, and base metals. Mitchell Services’ extensive experience and commitment to safety and innovation have solidified its reputation in the industry.
Mitchell Services’ strategic position in the mining services sector offers potential for growth, especially with the ongoing demand for minerals and energy resources.
Investors may be interested in Mitchell Services due to its established client base, diversified service offerings, and the critical role drilling services play in resource extraction. The company’s focus on safety, efficiency, and technological advancement positions it well to capitalise on opportunities in the mining and energy sectors.
Currently, Mitchell Services has a dividend yield of 12.9% with a dividend cover ratio of 3.4.
Michael Hill (Dividend Yield: 11.7%)
Michael Hill International Limited is a specialty retailer of jewellery, operating retail stores in Australia, New Zealand, and Canada.
Established in 1979, the company has grown its brand internationally, offering a wide range of jewellery products, including engagement rings, wedding bands, and fashion jewellery. And the company’s emphasis on quality craftsmanship and customer service has earned it a loyal customer base.
Investors might find Michael Hill appealing due to its established brand presence, international operations, and potential for growth in the jewellery retail sector.
The company’s focus on adapting to changing consumer preferences and leveraging e-commerce trends could enhance its competitiveness and profitability.
Currently, Michael Hill has a dividend yield of 11.7% with a dividend cover ratio of 10.9.
Grange Resources (Dividend Yield: 11.4%)
Grange Resources Limited is Australia’s largest producer of magnetite concentrate for steelmaking, operating the Savage River magnetite iron ore mine in Tasmania.
The company also owns and operates pellet plants and port facilities, providing an integrated supply chain from mine to market. Grange Resources’ high-quality magnetite concentrate is sought after in the steel manufacturing industry for its low impurities and energy efficiency in steel production.
The company’s position as a key supplier to the steel industry offers potential for stable demand, especially with global infrastructure development driving steel consumption.
Investors may be interested in Grange Resources due to its integrated operations, high-quality product, and strategic importance in the steel supply chain, while its focus on operational efficiency and sustainability initiatives could further enhance its appeal to investors seeking exposure to the resources sector.
Currently, Grange Resources has a dividend yield of 11.4% with a dividend cover ratio of 12.3.
Fonterra Shareholders’ Fund (Dividend Yield: 10.9%)
The Fonterra Shareholders’ Fund (FSF) offers investors an opportunity to gain economic exposure to Fonterra Co-operative Group Limited, a New Zealand-based multinational dairy company renowned for being one of the world’s largest dairy exporters.
Established as part of Fonterra’s Trading Among Farmers (TAF) scheme, the FSF allows non-farmer investors to participate in Fonterra’s financial performance without the need to hold co-operative shares.
This structure provides a unique avenue for investors to benefit from the global dairy industry’s dynamics, leveraging Fonterra’s extensive product range and international market reach.
In recent developments, FSF Management Company secured approval from the Australian Securities Exchange (ASX) to delist the FSF from the ASX. The delisting process was completed at the close of trading on Thursday, 27 February 2025, with units held on the ASX automatically transferred to New Zealand’s Exchange (NZX). 
This strategic move aims to consolidate Fonterra’s listing on the NZX, potentially streamlining operations and focusing investor activity within New Zealand’s financial markets.
Additionally, Fonterra announced an upgraded dividend payout policy, increasing shareholder payments to 60%-80% of its earnings, up from the previous 50%, reflecting the company’s strong financial position and commitment to enhancing shareholder value. 
Currently, FSF has a dividend yield of 10.9% with a dividend cover ratio of 1.9.
People Infrastructure (Dividend Yield: 10.5%)
People Infrastructure is a prominent workforce management company in Australia, specialising in staffing solutions, workforce management, and operational services across various industries, including healthcare, community services, information technology, and general industrial sectors.
The company provides a comprehensive suite of services, from recruitment and onboarding to payroll management and workplace health and safety compliance, ensuring clients can efficiently manage their workforce needs.
People Infrastructure’s ability to adapt to diverse industry requirements has solidified its reputation as a versatile and reliable partner in workforce solutions.
Recently, People Infrastructure has demonstrated resilience and adaptability, navigating challenges posed by economic fluctuations and industry-specific demands. The company’s strategic acquisitions and organic growth initiatives have expanded its service offerings and geographic footprint, enhancing its competitive position in the market.
Investors may find People Infrastructure appealing due to its diversified service portfolio, strong client relationships, and consistent financial performance. The company’s focus on sectors with sustained demand, such as healthcare and information technology, positions it well for future growth, making it a stock worth monitoring in the workforce management industry.
Currently, People Infrastructure has a dividend yield of 10.5% with a dividend cover ratio of 11.6.
SkyCity Entertainment Group (Dividend Yield: 10%)
SkyCity Entertainment Group is a leading entertainment and gaming company based in New Zealand, operating casinos, hotels, and restaurants across New Zealand and Australia.
The company’s flagship property in Auckland is a significant landmark, featuring a casino, luxury hotels, and the iconic Sky Tower. SkyCity’s diverse offerings cater to both domestic and international visitors, providing a comprehensive entertainment experience that includes gaming facilities, fine dining, and live entertainment.
Recently, SkyCity has focused on enhancing its digital presence, investing in online gaming platforms to complement its physical operations. This strategic move aims to capture a broader audience and adapt to changing consumer preferences towards online entertainment.
The company’s commitment to sustainability and community engagement has also been evident, with initiatives aimed at reducing environmental impact and supporting local communities.
Investors might be interested in SkyCity due to its strong brand recognition, diversified revenue streams, and proactive approach to embracing digital transformation. The company’s resilience in navigating regulatory challenges and its strategic investments in growth areas position it well for future success in the entertainment industry.
Currently, SkyCity has a dividend yield of 10% with a dividend cover ratio of 3.
Bisalloy Steel Group Ltd (Dividend Yield: 9.8%)
Bisalloy Steel Group is Australia’s only manufacturer of high-strength, abrasion-resistant quenched and tempered steel plates.
Serving industries such as mining, construction, defence, and energy, Bisalloy’s products are known for their durability and performance in demanding applications. The company’s commitment to quality and innovation has established it as a trusted supplier both domestically and internationally.
In recent developments, Bisalloy has focused on expanding its product range and entering new markets to drive growth. Collaborations with international partners have facilitated the development of specialised steel products tailored to specific industry needs, enhancing the company’s competitive edge.
Investors may be drawn to Bisalloy due to its niche market position, strong technical expertise, and potential for growth through product innovation and market diversification.
The company’s strategic initiatives to enhance operational efficiency and its focus on high-performance steel solutions position it well to capitalise on opportunities in various industrial sectors.
Currently, Bisalloy has a dividend yield of 9.8% with a dividend cover ratio of 2.7.
Past performance is not an indicator of future returns.
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