3 Top ASX Dividend Stocks To Watch

As the earnings season approaches, investors are eager to identify ASX dividend stocks that offer attractive yields and growth prospects. In this article, we will explore three top ASX dividend stocks that have caught the attention of investors and analysts alike.



1. TechnologyOne (TNE)
TechnologyOne is a leading provider of enterprise resource planning (ERP) software, with a strong focus on recurring revenue. The company's software-as-a-service (SaaS) model delivers 90% recurring revenue, with total annual recurring revenue reaching $470 million in fiscal year 2024, a 20% increase from the previous year. The company is projected to exceed $500 million in annual recurring revenue in the first half of fiscal year 2025.



TNE's profitability is underscored by its strong operating margins, averaging 29% in fiscal year 2024. The company has set an ambitious long-term goal of achieving $1 billion in annual recurring revenue by fiscal year 2030, reflecting its confidence in sustained growth. Strategic investments, including allocating 25% of revenue to research and development, have led to innovations such as SaaS+ and the digital experience platform. With cash reserves of $280 million and no debt, TNE is well-positioned for robust expansion.

2. Xero (XRO)
Xero is an online accounting software provider with an exceptional growth trajectory and a commitment to innovation. In the first half of 2025, XRO's revenue grew by 25% year-over-year to $NZ996 million, while annualised monthly recurring revenue increased by 22% to $NZ2.2 billion. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 51% to $NZ312 million, reflecting strong operational execution.



XRO's strategic investments drive its market leadership, with 4.2 million subscribers and a 15% rise in average revenue per user to $NZ43.08. Key innovations include tap to pay, artificial intelligence-powered tools like JAX, and expanded global capabilities in payroll and payments. The recent acquisition of Syft Analytics enhances XRO's advanced reporting and insights offering. With a robust $NZ2 billion cash position and plans to double its business size while maintaining profitability, XRO's strategic initiatives and disciplined capital allocation ensure its resilience and growth.

3. Macquarie Group (MQG)
Macquarie Group is a diversified global financial services group with a proven track record of success. In November 2024, MQG announced a first half 2025 net profit of $1.612 billion, up 14% from the previous corresponding period. Although this was 3% below consensus, analysts were expecting a brighter outlook than what management provided. However, Macquarie tends to underpromise and overdeliver, presenting soft share price reactions after results as potential buying opportunities.

Macquarie's stock chart remains in a long-term uptrend, supported by its strong performance in various sectors. The company's diversified operations, including retail and business banking, asset and wealth management, commodity trading, specialist advice, leasing and asset financing, and renewables development, contribute to its resilience and growth. As global economies are expected to experience strong growth in 2025, Macquarie is well-positioned to benefit from this trend, particularly in the commodities sector due to renewed stimulus in China.

In conclusion, TechnologyOne, Xero, and Macquarie Group are three top ASX dividend stocks to watch as the earnings season approaches. Each company offers attractive yields, strong growth prospects, and a commitment to innovation and strategic investments. By considering these factors, investors can make informed decisions about which dividend stocks to add to their portfolios.