Top Australian (ASX) Dividend Stocks

Top Australian (ASX) Dividend Stocks

UPDATED Aug 18, 2022

What are the best Australian (ASX) Dividend Stocks?

According to our Simply Wall St analysis these are the best Australian dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

7 companies meet this criteria in the Australian market

New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas properties.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: NHC's dividend (7.17%) is in the top 25% of dividend payers in the Australian market (6.31%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (8.5x) is below the Australian market (15.6x)

  • Earnings are forecast to grow 8.75% per year

  • Became profitable this year

Risks

No risks detected for NHC from our risks checks.

View all Risks and Rewards

Navigator Global Investments Limited operates as a fund management company in Australia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: NGI's dividend (9.47%) is in the top 25% of dividend payers in the Australian market (6.31%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 71% below our estimate of its fair value

  • Earnings are forecast to grow 27.02% per year

  • Earnings grew by 95.5% over the past year

Risks

  • Shareholders have been diluted in the past year

  • Large one-off items impacting financial results

  • Latest financial reports are more than 6 months old

View all Risks and Rewards

AUB Group Limited provides engages in the insurance broking and underwriting businesses in Australia and New Zealand.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: AUB's dividend (2.75%) is low compared to the top 25% of dividend payers in the Australian market (6.31%).

See Full Stock Report

Rewards

  • Trading at 35% below our estimate of its fair value

  • Earnings are forecast to grow 24.62% per year

  • Earnings have grown 14.9% per year over the past 5 years

Risks

  • Shareholders have been diluted in the past year

  • Large one-off items impacting financial results

View all Risks and Rewards

AOF is an ASX-listed REIT that wholly owns a diversified portfolio of nine office properties located across Australian metropolitan and CBD markets in Sydney, Adelaide, Melbourne, Brisbane and Canberra.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: AOF's dividend (8.84%) is in the top 25% of dividend payers in the Australian market (6.31%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 67.3% below our estimate of its fair value

  • Earnings are forecast to grow 110.07% per year

Risks

  • Large one-off items impacting financial results

View all Risks and Rewards

nib holdings limited, together with its subsidiaries, underwrites and distributes private health insurance to Australian and New Zealand residents, as well as international students and visitors.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: NHF's dividend (3.48%) is low compared to the top 25% of dividend payers in the Australian market (6.31%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 35.8% below our estimate of its fair value

  • Earnings are forecast to grow 10.31% per year

  • Earnings grew by 85.1% over the past year

Risks

No risks detected for NHF from our risks checks.

View all Risks and Rewards

McMillan Shakespeare Limited provides salary packaging, novated leasing, disability plan management and support co-ordination, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: MMS's dividend (5.16%) is low compared to the top 25% of dividend payers in the Australian market (6.31%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 59.9% below our estimate of its fair value

  • Earnings are forecast to grow 12.83% per year

  • Became profitable this year

Risks

No risks detected for MMS from our risks checks.

View all Risks and Rewards

Jumbo Interactive Limited engages in the retail of lottery tickets through internet and mobile devices in Australia, the United Kingdom, Fiji, and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: JIN's dividend (3.06%) is low compared to the top 25% of dividend payers in the Australian market (6.31%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 50.3% below our estimate of its fair value

  • Earnings are forecast to grow 15.7% per year

  • Earnings have grown 23.1% per year over the past 5 years

Risks

No risks detected for JIN from our risks checks.

View all Risks and Rewards
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