In this environment, high-quality, fully franked dividend stocks remain one of the most reliable ways to generate real income and protect capital.
Here are some standout names that continue to earn strong support from leading analysts and a mix of blue-chip defensives, diversified compounders, and select high-yield opportunities with sustainable payouts.
1.Washington H. Soul Pattinson (ASX: SOL)
The ultimate “set and forget” compounder. Soul Patts paid $1.03 fully franked in FY25 and offers a diversified portfolio across listed equities, private assets, property, and building products (enhanced by the recent Brickworks merger). Morningstar continues to rate it positively for its patient, value-driven approach and fortress balance sheet.
2. New Hope Corporation (ASX: NHC)
One of the highest fully franked yields on the ASX at ~8.8% grossed-up. Despite the cyclical nature of thermal coal, New Hope benefits from low-cost mines (Bengalla, New Acland Stage 3 ramp-up) and disciplined capital management. For investors seeking income with commodity leverage, it remains hard to beat at a forward P/E of ~6x.
3. Smartgroup Corporation (ASX: SIQ)
A lesser-known gem delivering ~9.4% grossed-up yield. Smart dominates salary packaging and novated leasing administration with sticky, recurring revenue from government and large corporate clients. Strong margin expansion and digital investments underpin consensus forecasts for double-digit earnings growth through 2026.
4. Woodside Energy (ASX: WDS)
For investors comfortable with energy exposure, Woodside offers a compelling combination of growth projects (Scarborough, Trion) and shareholder returns. The stock is currently yielding ~6.5% on a trailing basis, with Citi maintaining a Buy rating and highlighting robust free cash flow generation even at conservative commodity prices.
Final Thoughts
In an environment where bond yields may have peaked and equity markets remain range-bound, these names offer a powerful blend of:
Strong balance sheets
Sustainable payout ratios
Fully franked income
Resilience across economic cycles
Whether you’re building a retirement portfolio, supplementing cash flow, or simply seeking stability, quality dividend stocks deserve a core allocation heading into 2026. As always, consider your own risk tolerance, franking credit eligibility, and total-return objectives before investing.
Which of these names do you hold or are you considering adding? Happy to discuss in the comments.
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