Top 10 ASX Dividend Stocks Heading into 2025

1. Centuria Office REIT (COF.AX)

Dividend Yield as of December 25: 9.65%

Centuria Office REIT (COF.AX) is a real estate investment trust (REIT) company that invests in office buildings. The office segment within the REIT industry has faced significant challenges, as high interest rates have impacted rental income and office property values. Furthermore, the rise of remote work due to the COVID-19 pandemic has led to a decline in overall demand for office space. Due to these reasons, COF has been down by over 14.5% in 2024. However, analysts are presenting a positive outlook for the stock.

With Centuria Office REIT (COF.AX) currently valued at a significantly low price, near its 52-week low, its distribution yield has risen, which could attract some investors. While passive income shouldn’t be the sole focus for investors, it can still be a key factor in overall returns. The company has announced a distribution of 10.1 cents per unit for FY25, offering a forward distribution yield of 9.1%. This yield alone could potentially outperform the benchmark return in 2025.

In addition, the high interest rate environment has posed a major challenge for the REIT sector, which is why many REITs are currently trading close to their 52-week lows. However, a potential rate cut or two from the Reserve Bank of Australia (RBA) could help revive the sector, including the Centuria Office REIT (COF.AX). While it’s uncertain when this might happen, the RBA’s December statement indicated progress in controlling inflation in Australia.

Centuria Office REIT (COF.AX) is one of the best dividend stocks on our list as the stock supports a dividend yield of 9.65%, as of December 25.

Overall, Centuria Office REIT (COF.AX) ranks first on our list of the best ASX dividend stocks to buy. While we acknowledge the potential for COF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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