UPDATE: Investors are turning their attention to two compelling ASX dividend stocks that are currently delivering yields above 6%. With the Reserve Bank of Australia’s (RBA) cash rate anticipated to decline, these high-yielding shares present an attractive opportunity for income-focused investors.
The RBA is signaling a potential rate-cutting phase as inflation pressures wane, making traditional savings accounts less appealing. As the economic landscape shifts, the following ASX shares stand out for their robust dividend offerings.
Rural Funds Group (ASX: RFF) is a standout choice for investors seeking reliable income. This real estate investment trust (REIT) boasts a diverse portfolio of Australian farms, including cattle, vineyards, and nut farms. Despite recent challenges from rising interest rates, Rural Funds has consistently maintained its distribution, driven by rental agreements with built-in inflation adjustments.
Looking ahead, the company forecasts a distribution yield of 6.4% for FY26, marking a potential return to growth after stabilizing distributions in previous years.
Another noteworthy option is Duxton Water Ltd (ASX: D2O), which has been a model of consistency in dividend payments, growing its distribution every year since 2017. The company owns a portfolio of permanent water entitlements, providing essential water supply solutions to Australian farmers.
With recent drought conditions leading to heightened demand for reliable water sources, Duxton Water’s business model is more relevant than ever. As of 30 June 2025, the southern Murray-Darling-Basin storages are reported to be at their lowest levels in five years, further intensifying the need for long-term water security solutions. Duxton Water’s trailing grossed-up dividend yield stands at an impressive 6.9%.
As economic conditions evolve, these two ASX dividend shares not only offer financial returns but also address critical agricultural needs. Investors are encouraged to consider adding these stocks to diversify their income portfolios, especially as the market reacts to changing interest rates and economic dynamics.
Stay tuned for more updates on this developing story and keep an eye on how these companies perform in the coming months.
