A top Australian dividend stock with a 12% yield to buy in December 2025

The ASX is home to many top Australian dividend stocks. From Telstra Group Ltd (ASX: TLS) to BHP Group Ltd (ASX: BHP), from Westpac Banking Corp (ASX: WBC) to Woolworths Group Ltd (ASX: WOW), the Australian markets offer many companies that have decades of paying fat, fully franked dividends.

However, many of these dividend stocks have looked better as we survey them at the end of 2025. Some, perhaps Telstra and Westpac, are looking relatively expensive, and thus are offering dividend yields well below their historical averages right now. BHP and Woolies have their own issues, whether that be low commodity prices or minks in their business models that need ironing out.

That's why, if I had to choose an Australian dividend stock to invest in today, I'd probably go for something like the SPDR MSCI Australia Select High Dividend yield ETF (ASX: SYI).

This exchange-traded fund (ETF), like most ASX ETFs, holds a basket of underlying shares. In this case, those shares are all strong ASX dividend stocks with a history of providing relatively high yields to investors.

An ASX dividend stock with a 12.7% yield?

SYI contains all of the shares mentioned above, as well as Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS), QBE Insurance Group Ltd (ASX: QBE) and Coles Group Ltd (ASX: COL). All in all, this fund holds just under 60 ASX dividend stocks in a well-diversified income portfolio.

By investing in such a wide cross-section of the market, SYI can arguably offer the best income on the ASX has to offer, whilst diluting individual company risk.

Unlike most ASX dividend stocks, the SPDR Australia Select High Dividend Yield ETF pays out four dividend distributions annually. Over 2025, these quarterly payments added up to $3.72 per unit. At the current SYI unit price of $29.23, that translates to a trailing dividend distribution yield of 12.73%.

Now, before anyone rushes out to secure SYI units thinking they will enjoy a permanent 12.73% yield on their cash going forward, investors need to keep in mind that the dividend income from an ETF like this can fluctuate dramatically from year to year. The dividends received from this ETF's underlying holdings largely dictate what the fund itself can pay out. Not to mention the erratic profits that can stem from this ETF's periodic rebalancing.

To illustrate this inconsistency, SYI units only paid out $1.07 per unit over 2024, down significantly from that $3.72 enjoyed over 2025. Even so, if this were repeated in 2026, it would give this ASX ETF a yield of 3.66%.

Despite this unpredictable income stream, I think this Australian ETF would be a great investment for anyone who prioritises dividend income from their ASX shares today.

The post A top Australian dividend stock with a 12% yield to buy in December 2025 appeared first on The Motley Fool Australia.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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