Who buys ASX dividend shares in Australia?

Nurses, teachers, office workers, sales assistants and CEOs are among the millions of Australians earning income from ASX dividend stocks, according to recently released ATO tax data for FY22.

We took a closer look at the data to find out more about who is buying ASX dividend stocks. The data shows that Australian dividend investors include the country’s lowest-income earners.

This is a testament to the accessibility and affordability of stock investing for people of all ages and financial means.

Here are our conclusions.

From sales assistants to CEOs, ASX shares are being bought

The data shows that around 2.75 million taxpayers declared franked dividend income in their tax returns.

Average franked dividend income per person was $12,178, up from $8,509 in fiscal 2021. The median was $549 per person, up from $343 in fiscal 2021.

The data was broken down into income groups and taxable income groups. This allowed us to learn more about ASX dividend share investors.

We found that registered nurses earning taxable income of $45,000 to $120,000 are among the most prolific investors in ASX dividend shares, with 23,200 declaring franked dividend income in FY22.

About 22,600 administrative assistants or office workers, as well as 20,800 office administrators or managers and about 18,000 bank tellers in the same taxable income bracket also declared franked dividend income.

The next largest cohort consisted of 17,000 male CEOs or managing directors earning $180,000 or more. Another 16,300 male CEOs earning between $45,000 and $120,000 also reported franked dividend income.

About 16,200 saleswomen earning between $18,200 and $45,000 reported franked dividend income.

In FY22, 16,200 female accountants and 14,500 female nursery or primary school teachers, with taxable incomes of between $45,000 and $120,000, declared tax-free dividend income to the ATO.

What about unfranked dividend income?

Unfranked dividend income can come from international shares or ASX companies that generate income overseas.

About 1.19 million taxpayers reported unfranked dividend income in FY22. The average income was $1,309 per person, up from $1,109 in FY21. The median income was $166, up from $89 in FY21.

The largest cohorts of workers reporting unfranked dividend income all earned between $45,000 and $120,000 in taxable income.

Once again, registered nurses lead the way, with 10,270 of them reporting unfranked dividend income.

About 8,800 administrative assistants or office workers, 7,700 administrators or office managers, 7,000 female accountants, 6,300 male accountants and 6,100 female nursery or primary school teachers did the same.

Some high-income cohorts were among the next largest groups.

The data shows that around 6,100 male CEOs and nearly 6,000 male managing directors, all earning more than $180,000 in taxable income per year, declared unfranked dividend income in FY22.

Brokers recommend buying these ASX dividend stocks

Here has The idiot, We regularly cover ASX dividend stocks that attract new buying recommendations from brokers.

Here are some examples of ASX dividend stocks that experts recommend we buy today.

Goldman Sachs has a buy rating on QBE Insurance Group Ltd. (ASX: QBE). The broker expects QBE shares to pay a dividend of 63 US cents (96.9 Australian cents) in FY25. Based on QBE’s share price of $17.35 at Friday’s close, this equates to a dividend yield of 5.6 per cent.

Morgans has a buy rating on Eagers Automotive Ltd (ASX:APE). The broker expects a fully paid dividend of 74 cents per share for FY25. Based on Friday’s closing share price of $10.55, that represents a yield of 7%.

Goldman also likes Rio Tinto Ltd. (ASX: RIO) and is forecasting fully paid dividends of $4.45 ($6.84) per share for FY25. Based on Rio’s closing share price of $118.75, this equates to a dividend yield of 5.56%.

Morgans also recommends Woodside Energy Group Ltd. (ASX: WDS) shares. It is forecasting a fully paid dividend of $1.57 per share for FY25. Based on the current share price of $27.48, this represents a yield of 7.8%.