Seeking Shelter in Dividends: Three ASX Stocks for a Turbulent February 2026
February 2026 has brought fresh volatility to the Australian sharemarket, as investors grapple with the prospect of further interest rate hikes and persistent global economic strains. In this climate of uncertainty, the search for reliable income streams has intensified, putting dividend-paying stocks back in the spotlight for portfolios seeking a buffer against turbulence.
Below, we analyse three ASX-listed companies—spanning industrials, finance, and insurance—that currently offer dividend yields above 3%, evaluating their financial health and payout sustainability. A broader list of 32 screened dividend stocks is available here.
Korvest Ltd (ASX:KOV)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: The industrial products manufacturer, specialising in cable support systems and galvanising services, holds a market capitalisation of A$182.7 million.
Dividend Yield: 4.2%
Korvest presents a high-yield but historically uneven income proposition. Its dividend has grown over the past decade, yet the path has been marked by significant annual cuts exceeding 20%. The silver lining for income seekers is coverage: the current payout ratio sits at a sustainable 52.8% of earnings, supported by cash flows. The company's recent first-half results for FY26 showed sales of A$60.3 million and net income of A$5.44 million, underpinning its declaration of a fully franked A$0.25 per share dividend.
Macquarie Group Limited (ASX:MQG)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: The global financial conglomerate, with operations spanning asset management to commodities, is an ASX heavyweight with a A$77.44 billion market cap.
Dividend Yield: 3.2%
Macquarie's dividend story is one of growth shadowed by volatility. While payouts have trended upward over ten years, they remain less predictable than those of pure income stocks. Its yield of 3.16% is modest compared to the market's highest payers, but the dividend appears secure, with a payout ratio of 67.6% that is forecast to remain stable. The group's robust first-half net income of A$1.66 billion for FY26 and a recent board refresh—including the appointment of seasoned banker William Vereker—signal a focus on steady governance amid growth.
QBE Insurance Group Limited (ASX:QBE)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: The international insurer operates across Australia Pacific, North America, and global markets, commanding a A$29.41 billion market capitalisation.
Dividend Yield: 3.8%
QBE offers a middle-ground yield with a notably well-covered dividend. Earnings and cash flow payout ratios of 44.9% and 26.2%, respectively, provide a solid foundation for its 3.81% yield, though it still lags the market's top income generators. The company is in a period of strategic capital management, exemplified by a US$300 million subordinated notes issue to bolster Tier 2 capital. A planned leadership transition, with Yasmin Allen set to become Chair, aims to strengthen oversight during this phase.
Investor Perspectives:
"In this market, a bird in the hand is worth two in the bush," says Michael Tan, a retired accountant from Melbourne. "I'm leaning towards Korvest for its franked yield above 4%. The coverage metrics give me enough comfort, even with its patchy history."
Sarah Chen, a portfolio manager at a Sydney wealth firm, offers a more cautious view: "The focus should be on sustainability, not just headline yield. Macquarie's diversified revenue and QBE's strong coverage ratios make them more resilient long-term holds in a shaky economic cycle."
However, David Rigby, an independent investor from Perth, is sharply critical: "This is rearranging deckchairs on the Titanic. With rate hikes looming, chasing sub-4% yields from historically volatile payers is a fool's errand. The entire dividend stock thesis feels dangerously outdated for 2026."
This analysis is based on historical data and analyst forecasts using an unbiased methodology. It is not intended as financial advice and does not constitute a recommendation to buy or sell any security, nor does it consider individual objectives or financial circumstances. Our commentary is driven by long-term fundamental analysis and may not incorporate the latest company announcements. Simply Wall St holds no position in the mentioned stocks.
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