Top Australian (ASX) Dividend Stocks

Top Australian (ASX) Dividend Stocks

UPDATED Jun 28, 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.

8 companies meet this criteria in the Australian market

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

  • High Dividend: MMS's dividend (6.98%) is in the top 25% of dividend payers in the Australian market (6.67%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 67.9% 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

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

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: NGI's dividend (10.21%) is in the top 25% of dividend payers in the Australian market (6.67%)

  • Notable Dividend

  • Future Dividend Coverage

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 73.7% below our estimate of its fair value

  • Earnings are forecast to grow 19.87% 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

View all Risks and Rewards

Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: BGA's dividend (2.82%) is low compared to the top 25% of dividend payers in the Australian market (6.67%).

See Full Stock Report

Rewards

  • Trading at 22.4% below our estimate of its fair value

  • Earnings are forecast to grow 21.33% per year

  • Earnings grew by 128.3% over the past year

Risks

No risks detected for BGA from our risks checks.

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 (3.12%) is low compared to the top 25% of dividend payers in the Australian market (6.67%).

See Full Stock Report

Rewards

  • Trading at 33.1% below our estimate of its fair value

  • Earnings are forecast to grow 6.16% 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

Accent Group Limited engages in the retail, distribution, and franchise of lifestyle footwear, apparel, and accessories in Australia and New Zealand.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: AX1's dividend (4.44%) is low compared to the top 25% of dividend payers in the Australian market (6.67%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 82.4% below our estimate of its fair value

  • Earnings are forecast to grow 32.55% per year

Risks

  • Profit margins (3.7%) are lower than last year (8.7%)

View all Risks and Rewards

Pental Limited manufactures, markets, and distributes personal, household, and commercial products in Australia, New Zealand, and Asia.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: PTL's dividend (7.25%) is in the top 25% of dividend payers in the Australian market (6.67%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 79.6% below our estimate of its fair value

  • Earnings are forecast to grow 10.82% per year

  • Earnings grew by 4.5% over the past year

Risks

  • Does not have a meaningful market cap (A$68M)

  • Shareholders have been diluted in the past year

View all Risks and Rewards

Dusk Group Limited operates as an omni-channel specialty retailer that focuses on home fragrance products in Australia.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: DSK's dividend (11.7%) is in the top 25% of dividend payers in the Australian market (6.67%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 85.8% below our estimate of its fair value

  • Earnings are forecast to grow 6.66% per year

  • Earnings have grown 43.6% per year over the past 5 years

Risks

  • Does not have a meaningful market cap (A$106M)

View all Risks and Rewards

NRW Holdings Limited, through its subsidiaries, provides diversified contract services to the resources and infrastructure sectors in Australia.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: NWH's dividend (6.3%) is low compared to the top 25% of dividend payers in the Australian market (6.67%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 68.7% below our estimate of its fair value

  • Earnings are forecast to grow 11.05% per year

  • Earnings have grown 18.3% per year over the past 5 years

Risks

  • Significant insider selling over the past 3 months

View all Risks and Rewards
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