Finding reliable income in uncertain markets is no small task. Dividend investors tend to look for companies with consistent cash flows, visible earnings, and a track record of rewarding shareholders steadily over time.
Figure 1: ASX branding displayed at the Australian Securities Exchange [Courtesy: Crikey]
This week, Sanlam Private Wealth has named two high-yield ASX stocks it believes fit that brief well. Both companies come with distinct income credentials and are currently attracting attention from advisers focused on the ASX income stocks 2026 opportunity set.
Stock 1: BWP Trust — A Defensive Property Play With Steady Yields
BWP Trust (ASX: BWP) is a real estate investment trust and one of the best ASX dividend shares for investors seeking low-risk, long-term income. The Company is the largest owner of Bunnings Warehouse sites in Australia, holding a portfolio of 66 stores.
Sanlam Private Wealth described BWP as a defensive property investment entering a more proactive phase.
Figure 2: BWP Trust (ASX: BWP) logo [Courtesy: Motley Fool Australia]
The firm noted that BWP’s income profile is characterised by high occupancy, long lease terms, and strong tenant quality, with long-dated leases providing income visibility and steady rental growth.
Consensus Dividend Estimates Support a Solid Income Case
Sanlam stated that BWP appeals to investors in uncertain times as it offers low tenant risk and reliable cash flow. Consensus estimates point to dividends per share of 19.4 cents in FY2026 and 19.8 cents in FY2027.
These figures imply dividend yields of approximately 5% and 5.15%, respectively, based on the share price at the time of the recommendation.
The trust’s concentrated exposure to Bunnings as a tenant, one of Australia’s most resilient retailers, underpins its reputation as a high-yield ASX stock with genuinely defensive characteristics.
Stock 2: IVE Group Limited — Fully Franked Yield of Up to 7.6%
IVE Group Limited (ASX: IGL) is a diversified marketing company and another of Sanlam Private Wealth’s best ASX dividend shares picks this week.
IVE has grown through an active acquisition strategy, with management integrating those businesses to deliver synergies and cost efficiencies. Sanlam Private Wealth said that management execution is an under-rated strength at IVE.
Figure 3: IVE Group Limited (ASX: IGL) logo [Courtesy: IVE Group Annual Report]
The firm also highlighted the Company’s active share buy-back programme and noted the stock was recently trading on a fully franked dividend yield of almost 7%, enhancing its income appeal. Sanlam added that the stock is trading at a discount in its view.
Bell Potter Forecasts Growing Dividends Through FY27
IVE Group is not widely covered in the broker community, meaning consensus estimates are limited. However, Bell Potter analysts are expecting fully franked dividends of 18 cents per share in FY2026 and 20 cents per share in FY2027.
Based on the share price at the time of the recommendation, those figures imply dividend yields of 6.8% and 7.6%, respectively, making IVE one of the more compelling ASX income stocks in 2026 for yield-focused investors.
Bell Potter carries a buy rating on IVE Group with a price target of A$3.25 per share.
Industry Outlook
Australia’s income investing landscape is drawing renewed interest as investors seek alternatives to fixed income in a moderating rate environment.
Real estate investment trusts with long-dated lease structures and high-quality tenants are well-positioned to deliver predictable distributions. Meanwhile, diversified marketing and services companies with strong cash generation and franking credits offer a tax-effective income stream that remains attractive to domestic investors.
Both sectors feature in the broader conversation around high-yield ASX stocks as institutional and retail investors reassess their income portfolios heading into the second half of 2026.
BWP Trust vs IVE Group: A Side-by-Side Comparison
Future Direction and Impact on ASX Income Investors
The two best ASX dividend shares named by Sanlam Private Wealth this week carry clear implications for investors building income-focused portfolios:
- BWP Trust holds a portfolio of 66 Bunnings Warehouse sites, with high occupancy and long-dated leases underpinning distribution visibility
- BWP consensus dividend estimates stand at 19.4 cents per share in FY2026 and 19.8 cents in FY2027, implying yields of 5% and 5.15% respectively
- IVE Group is targeting a fully franked dividend of 18 cents per share in FY2026 and 20 cents in FY2027, per Bell Potter estimates
- IVE’s implied dividend yields of 6.8% and 7.6% place it among the higher-yielding ASX income stocks in 2026
- Bell Potter has a buy rating and A$3.25 price target on IVE Group
- IVE has an active share buy-back programme running alongside its dividend strategy
- Dividend yields and price targets are analyst estimates and are not guarantees of future returns
Frequently Asked Questions
Q1. Why are BWP Trust and IVE Group considered best ASX dividend shares?
Ans. Both companies offer strong income credentials. BWP provides defensive, lease-backed distributions from Bunnings properties, while IVE Group offers fully franked yields of up to 7.6% per Bell Potter estimates.
Q2. What dividend yield does BWP Trust offer?
Ans. Based on consensus estimates and the share price at the time of recommendation, BWP is expected to yield approximately 5% in FY2026 and 5.15% in FY2027.
Q3. What makes IVE Group one of the high yield ASX stocks to watch?
Ans. IVE Group is expected to pay fully franked dividends of up to 20 cents per share in FY2027, implying a yield of 7.6% based on the share price at time of recommendation, per Bell Potter.
Q4. Does IVE Group have a share buy-back programme?
Ans. Yes. IVE Group has initiated a share buy-back, which Sanlam Private Wealth cited as an additional reason for its positive view on the stock.
Q5. Who recommended these ASX income stocks in 2026?
Ans. Sanlam Private Wealth named both BWP Trust and IVE Group as buys this week, as reported by The Bull and covered by Motley Fool Australia on 11 May 2026.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on the article published online. These are estimates only and are not guarantees of future distributions or returns. Investing in securities involves risk, including the possible loss of principal. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
Sources
https://www.fool.com.au/2026/05/11/expert-names-2-asx-dividend-shares-to-buy/
https://www.asx.com.au/markets/company/BWP
https://www.asx.com.au/markets/company/IGL
Tags: ASX Dividend Stocks, BWP Trust Last modified: May 11, 2026
