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GER
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Highlights
- STO dividend yield currently higher than 5-year average
- WES shares showing strong recovery from 52-week lows
- Both companies contribute to ASX200 index with distinct sector strengths
As the ASX200 index continues to reflect broader market sentiments, two prominent ASX-listed names—Santos Ltd (STO) and Wesfarmers Ltd (WES)—are attracting attention for their movements and dividend profiles among ASX dividend stocks.
Santos Ltd (ASX:STO): Energy Sector Under Pressure
Santos Ltd, one of Australia’s largest oil and gas producers, has seen its share price dip by 3.4% since the beginning of 2025. Operating a vast network of oil and gas fields connected by pipelines and related infrastructure, Santos has grown significantly since its inception in the 1950s.
Despite its operational strength, Santos has recently faced environmental challenges. Allegations of greenwashing have surfaced, particularly around its climate disclosures. While the company targets net-zero Scope 1 and 2 emissions by 2040, its Scope 3 emissions—those resulting from product use—remain a contentious issue, representing over 75% of its total emissions.
From a dividend standpoint, Santos is currently yielding around 5.69%, a figure notably higher than its 5-year average of 4.64%. While this may seem appealing on the surface, it’s important to note that last year’s dividend was below its 3-year average. This signals that the yield spike may be partly attributed to a declining share price rather than increasing payouts—a key nuance when examining ASX dividend stocks.
Wesfarmers Ltd (ASX:WES): Conglomerate on the Rise
Wesfarmers Ltd, founded in 1914, is a diversified giant with operations across retail, chemicals, fertilisers, and industrial safety products. The company is best known for its flagship brand, Bunnings, which contributes significantly to its operating earnings.
Wesfarmers shares have made a robust recovery, now trading 33.1% above their 52-week lows. Historically likened to a publicly listed private equity firm, the company has demonstrated a successful track record of acquiring and scaling businesses—including Coles Group, which it acquired in 2007 and spun off in 2018.
Currently, the dividend yield for Wesfarmers stands at approximately 2.34%, trailing behind its 5-year average of 3.36%. This aligns with the company’s recent valuation uplift, suggesting market optimism around its performance rather than a drop in payouts.
Both (STO) and (WES) are cornerstone contributors to the ASX200 index, representing key sectors: energy and consumer goods. While Santos offers a relatively high yield that merits scrutiny, Wesfarmers continues to project stability through its diversified business model and operational resilience.
For those analysing ASX200 constituents with a focus on dividends and sector strength, these two companies provide contrasting yet valuable insights into market positioning and income generation potential.
