Buy Hold Sell: 5 ASX Stocks with Growing Dividends

Why It Matters

These picks give Australian investors a blend of high current yields and upside from dividend growth, meeting demand for reliable income in a low‑interest‑rate environment while providing sector diversification for defensive positioning.

Key Takeaways

• Screen targets >AU$1bn cap, >4% forward yield.
• Five picks span consumer, finance, transport sectors.
• Dividend growth forecasted for each stock.
• Aurizon, JB Hi-Fi, Transurban show strong cash flow.
• Income investors gain yield plus potential appreciation.

Pulse Analysis

Dividend‑focused investors in Australia have been chasing higher yields as central banks keep policy rates near historic lows. While a 4% or greater dividend yield looks attractive on paper, savvy investors also demand evidence that payouts can increase over time, preserving purchasing power and supporting total return. The ASX offers a range of mature companies capable of delivering both income and growth, but identifying those that combine solid cash‑flow generation with credible dividend‑increase forecasts requires disciplined screening.

The latest episode of Livewire’s “Buy Hold Sell” applied a straightforward filter: market capitalisation above AU$1 billion, a forward dividend yield above 4%, and analyst consensus pointing to dividend‑per‑share growth in the coming years. This process surfaced five candidates—Aurizon Holdings, JB Hi‑Fi, Transurban, Computershare and The Lottery Corporation—spanning consumer discretionary, financial services and transport. Each company boasts strong balance sheets and earnings visibility, allowing them to sustain current payouts while allocating capital toward incremental dividend hikes.

For income‑oriented portfolios, the blend of high yield and projected dividend growth offers a dual advantage: immediate cash flow and the potential for compounding returns. However, investors should weigh sector‑specific risks, such as commodity price exposure for Aurizon or retail competition for JB Hi‑Fi, against the defensive qualities of utilities‑like Transurban. By diversifying across these picks, Australian investors can construct a resilient income stream that outperforms the broader market’s average yield while positioning for modest capital appreciation.

Original Description

There's two things you want out of a good income stocks - a solid yield and the ability to grow that yield over time.

In this episode of Buy Hold Sell, Livewire's Chris Conway hosts Peter Gardner from Plato Asset Management and Sean Roger from Perpetual to run the ruler over five dividend stocks with better-than-market yields and expected dividend growth.

The criteria for finding the stocks was fairly straightforward. Chris ran a screen filtering companies above a billion market cap, offering a one-year forward yield of more than 4% (better than the market), and forecasted to see dividend per share growth over the next few years.

The screen threw up some interesting names across consumer discretionary, financial services and transport, but are these stocks worth adding to your watchlist, according to the pros? Find out by watching.

Time codes

0:00 Introduction

0:44 - Aurizon Holdings

2:32 - JB Hi-Fi

4:22 - Transurban

6:32 - Computershare

8:23 - The Lottery Corporation