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Top Australian (ASX) Food, Beverage & Tobacco Dividend Stocks
UPDATED Jun 04, 2023
What are the best Australian (ASX) Food, Beverage & Tobacco Dividend Stocks?
According to our Simply Wall St analysis these are the best Australian Food, Beverage & Tobacco 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.
1 company meet this criteria in the Australian market
Bega Cheese Limited receives, processes, manufactures, and distributes dairy and other food-related products in Australia.
Dividend Criteria
Stable Dividend
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: BGA's dividend (2.79%) is low compared to the top 25% of dividend payers in the Australian market (7.47%).
Earnings Coverage
Rewards
Trading at 21.8% below our estimate of its fair value
Earnings are forecast to grow 40.35% per year
Risks
Profit margins (0.1%) are lower than last year (2.9%)
Large one-off items impacting financial results