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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
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.
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
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
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%).
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.
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%).
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
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
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%)
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
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
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
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)
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
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