How your most tipped income stocks performed in 2025

Income investing in 2025 proved more dynamic than many expected. While dividends continued to provide a dependable foundation, total returns were increasingly driven by sector rotation, commodity moves and shifting expectations around interest rates. 

Infrastructure, resources and select defensives enjoyed periods of strong performance, while parts of the traditional bank-heavy income trade delivered steadier, but less spectacular, outcomes.

Importantly, investors were reminded that income portfolios don’t operate in isolation from broader market forces; capital growth still matters, even when yield is the starting point.

But how did that play out for the income stocks our readers were most confident backing?

Your 10 most-tipped income stocks for 2025

Around a year ago, we asked our Livewire and Market Index readers for their top ASX income stock picks for 2025 as part of our 2025 Outlook Series Survey. Almost 5,000 of you took part. As we count down to the end of the year, it's time to revisit the picks and see how you got on.

Please note: We are sharing information from the Livewire and Market Index readerships by publishing this list. We hope it inspires ideas for your investment research. This information is not, nor is it intended to be, a set of recommendations. Please do your own research and seek advice from a professional. Past performance is not a reliable indicator of future return. 

As the table above shows, your top 10 income picks were dominated by familiar, large-cap names.

The major banks featured heavily, led by Commonwealth Bank, with Westpac and National Australia Bank also making the cut - underscoring the enduring role financials play in income-focused portfolios. 

Resources and energy were another key theme, with BHP, Fortescue and Woodside Energy all attracting strong support, while defensives such as Telstra, APA Group and Wesfarmers rounded out the list.

So how did these crowd-favourite income stocks actually perform in 2025? According to the data, you crushed it.

The results

Key metrics (*as at Friday 12 December 2025)

• Highest total return: APA Group (35.58%), Fortescue (34.52%), Telstra (28.43%)
• Lowest total return: Macquarie Group (-5.58%), Commonwealth Bank (6.28%), Woodside Energy (10.20%)
• Average total return: 19.70%
• ASX 200 total return: 8.16%
• Highest dividend yield: Woodside Energy (9.67%), Fortescue (8.60%), Telstra (6.98%)
• Average dividend yield: 6.24%
• Number of stocks with a positive return: 9 (90%)
• Number of stocks with a negative return: 1 (10%)

Infrastructure, miners and Telstra did the heavy lifting

The strongest outcomes among your most-tipped income stocks came from areas that combined dependable cash flows with improving earnings momentum or sustained commodity prices.

APA Group (ASX: APA) was the standout, delivering a 35.58% total return over 2025. While its dividend contributed a steady 4.73%, the bulk of the return came from a strong re-rating in the share price as investors sought regulated infrastructure exposure amid falling bond yields and renewed confidence in earnings stability.

Fortescue (ASX: FMG) also rewarded income investors willing to tolerate commodity volatility. Despite a choppy iron ore price, FMG returned 34.52%, supported by a robust 8.60% dividend and renewed optimism around capital discipline and balance sheet strength.

BHP (ASX: BHP) returned 21.44%, combining moderate capital growth with a 6.17% dividend, while Wesfarmers (ASX: WES) delivered a respectable 19.17%, supported by stable earnings and consistent payouts.

Telstra (ASX: TLS) rounded out the top tier, with a 28.43% total return. Improved operational execution and confidence around medium-term earnings helped shift the narrative from “bond proxy” to credible total-return income stock.

Banks delivered steady income, but returns diverged

The major banks featured prominently in your income picks, reflecting their enduring role in Australian income portfolios. Performance, however, varied meaningfully across the sector.

Westpac (ASX: WBC) emerged as the strongest of the big four, posting a 26.83% total return, driven by solid share price gains and a 6.78% dividend yield. 

NAB (ASX: NAB) followed with a 20.08% return, offering dependable income alongside moderate capital growth.

By contrast, Commonwealth Bank (ASX: CBA) - the most tipped stock overall - lagged the pack. While its dividend remained reliable, limited share price upside saw CBA return just 6.28% for the year, highlighting the valuation headwinds faced by the country's biggest bank.

The lesson was clear: even within defensive income sectors, entry price and growth expectations mattered.

Yield helped, but didn’t guarantee success

Several stocks delivered solid income, but more muted overall outcomes.

Woodside Energy (ASX: WDS) illustrated the limits of chasing headline yield. Despite offering the highest dividend of the group (9.67%), the stock finished the year with a total return of just 10.20%, as a largely flat share price offset the income appeal. Energy market volatility and capital allocation concerns capped investor enthusiasm.

The weakest result among your income picks came from Macquarie Group (ASX: MQG).

Despite being tipped as an income name, MQG finished 2025 with a -5.58% total return, as a 9.06% share price decline overwhelmed its 3.48% dividend yield. More cyclical earnings exposure and weaker conditions in capital markets weighed on sentiment throughout the year.

It served as a reminder that not all income stocks offer downside protection — particularly those with earnings tied to market activity.

What this year tells us about income investing

Across the full basket of your most-tipped income stocks, the average total return was 19.70%, split between 13.46% capital growth and 6.24% in dividends.

The spread, however, was wide; from APA’s mid-30% return to Macquarie’s negative outcome, reinforcing that diversification and stock selection mattered just as much as yield.

In 2025, income investors were rewarded not simply for holding high-dividend stocks, but for owning businesses with resilient earnings, sensible valuations and exposure to the right parts of the cycle. As markets look ahead to 2026, that balance between income and growth remains just as critical.