QBE Insurance Group Stock And Other High Yield ASX Dividend Picks

Central banks are signalling that interest rates may stay higher for longer as they watch inflation and bond markets closely. For income seekers this keeps the spotlight on what can be earned from portfolios right now. Reliable dividend income becomes more valuable when cash yields might not rise much further. This article picks out three stocks from the Dividend Powerhouses screener that offer yields above 5% with covered, growing payouts.

The stocks covered below are just a small sample from this yield focused idea, and the full screen surfaced 26 more companies with equally compelling dividend stories that are not included here. To see the wider opportunity set, head straight to the Dividend Powerhouses (3%+ Yield) screener to identify, filter and analyze potential high conviction income plays.

Insurance Australia Group (ASX:IAG)

Overview: Insurance Australia Group is one of Australia and New Zealand’s largest general insurers, covering everyday risks such as cars, homes, businesses and liability under brands like NRMA, CGU and AMI, while also offering investment management services. It sells policies through brokers, branches, online channels and partners such as banks and motor dealerships.

Operations: Insurance Australia Group generates most of its revenue from Retail Insurance Australia at about A$9.6b, with A$4.5b from Intermediated Insurance Australia, A$3.8b from New Zealand and A$0.4b from Corporate & Other.

Market Cap: A$19.2b

Insurance Australia Group appears on this dividend screen because the business mixes extensive car and home cover with commercial lines, conservative reinsurance and ongoing investment in technology that is intended to lift margins and support shareholder returns. The stock trades below one internal fair value estimate and on a lower P/E than some domestic peers. Analysts have highlighted potential for earnings growth supported by cost control, acquisitions and capital management. There are also challenges to consider. Revenue is forecast to decline, profit margins have eased, funding relies on external borrowing and the dividend record has been patchy. The current set up may be of interest to income focused investors who are comfortable with execution risks around technology upgrades, climate risk pricing and integration of recent deals.

Insurance Australia Group’s mix of car, home and commercial cover plus tech investment has investors focused on earnings momentum, yet the real story may sit in the 1 key reward and 1 important warning sign that could change how you view its dividend path

Build your own dividend powerhouse shortlist

Insurance Australia Group and the two other stocks in this list all came from a single screener, but your next income idea does not have to stop there. Use our flexible Screener to mix filters like valuation, dividends, risks and balance sheet strength, or jump straight into one of our curated Investing Ideas.

QBE Insurance Group (ASX:QBE)

Overview: QBE Insurance Group is a global insurer and reinsurer founded in 1886 that provides a wide range of cover including property, motor, liability, agriculture, workers’ compensation, marine, energy, aviation, and specialty lines, and it also manages Lloyd’s syndicates and investment portfolios from its base in Sydney.

Operations: QBE Insurance Group generates about US$11.2b from International operations, US$8.2b from North America, US$5.7b from Australia Pacific and US$77m from Corporate & Other.

Market Cap: A$35.3b

Income investors watching QBE Insurance Group will see a business with broad global reach, rising profitability and a balance sheet that AM Best currently rates as A with a stable outlook, yet still trading well below one internal fair value estimate. Earnings grew 23.3% over the past year, margins sit at 11.4% and recent moves in cyber cover and India expansion speak to areas where premium growth could continue. At the same time, softening premium rate growth, exposure to large loss events and an uneven dividend record mean you need to be comfortable with some earnings and income volatility. For those willing to weigh that trade off, the combination of diversification, capital strength and valuation may justify a closer look at what could come next for this insurer.

QBE Insurance Group’s global reach, 23.3% earnings growth and 11.4% margin suggest the story is still unfolding. The real twist may sit in the 3 key rewards and 1 important warning sign that most investors are missing

Suncorp Group (ASX:SUN)

Overview: Suncorp Group is a Brisbane based insurer that provides home, contents, motor, boat and a wide range of commercial and liability cover to retail, corporate and commercial customers across Australia and New Zealand through multiple brands.

Market Cap: A$20.3b

Suncorp Group catches the eye of dividend investors because it combines a multi decade presence in Australian and New Zealand insurance with clear capital return actions like the A$250 million buyback and both ordinary and special dividends announced on 11 August 2026. At the same time, earnings fell sharply over the past year, margins are under pressure at 6.5% and funding relies entirely on external borrowing, so the yield comes with real risk. The key question is whether digital upgrades, tighter pricing and a fresh leadership structure around customer and digital focus can offset more frequent weather events and an uneven dividend record, or whether recent cash returns are masking a tougher core earnings picture that income investors need to understand in more detail.

Suncorp Group’s fresh buyback and special dividends have many focused on cash today, yet the real tension sits in the 1 key reward and 2 important warning signs that could reveal whether this yield story quietly shifts course

Seeking Fresh Alternatives For Your Income?

Fresh opportunities can move from quiet to crowded quickly. Some stocks build momentum fast, others get caught dropping just as the crowd arrives. Check these under the radar lists and act now.

• Spot income ideas with strong balance sheets before they are widely talked about by scanning the curated list of solid balance sheet and fundamentals (19 results) while it still flies under most radars.
• Track potential high growth stories linked to AI that already generate profits, not just hype, by reviewing the focused 70 profitable AI stocks that aren't just burning cash before momentum runs away.
• Review potential shifts in energy and infrastructure demand by checking the hand picked 90 nuclear energy infrastructure stocks while it still sits quietly in the background.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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