Business · Markets · 1 hr ago
How to assess ASX dividend shares for 2027
An investor has outlined how they would look for dividend-paying shares on the Australian Securities Exchange, or ASX, for 2027.
They say a company needs dependable earnings and cash flow to support regular payouts.
The investor gives Commonwealth Bank and Telstra as examples of companies with established sources of customer demand.
They also recommend checking whether earnings and dividends are expected to grow, and how much profit a company already pays out.
Economic conditions such as interest rates, household spending and commodity prices can affect company profits and dividends.
The investor says mining company BHP's payouts can vary with commodity markets, and suggests holding shares across industries to avoid relying on one sector.
They would also compare a share's price with its expected dividend and consider franking credits, which may matter to Australian investors.
The article sets out factors investors could use to assess ASX dividend shares for 2027.
It recommends looking for businesses with dependable earnings and cash flow to support dividends.
It says investors should consider forecasts for earnings and dividends, as well as how much profit a company pays out.
The article highlights interest rates, household spending and commodity prices as factors that can affect company earnings and dividends.
It also advises comparing forecast dividends with share prices and considering franking credits.
- Who
- Income investors assessing Australian dividend shares.
- What
- The article offers criteria for finding potential ASX dividend shares for 2027.
- When
- Ahead of 2027; the article was published on 12 October 2026.
- Where
- The Australian Securities Exchange (ASX).
- Why
- To help investors identify shares with attractive income that may be sustainable or grow over time.
This story does not have two clearly opposing sides.
For me, the strongest candidates would combine an attractive starting yield with a realistic opportunity for that income to grow.
A generous yield is certainly welcome, but I would be particularly interested in companies that can maintain their dividends through difficult conditions and potentially increase them over time.
This story does not have a timeline yet.
- Publication date
- 12 October 2026
- Target year
- 2027
- Business examples
- Commonwealth Bank of Australia; Telstra Group
- Economic factors
- Interest rates, household spending and commodity prices
- Additional consideration
- Franking credits
Sources
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