Top Australian (ASX) Food, Beverage & Tobacco Dividend Stocks

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

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  • Trading at 21.8% below our estimate of its fair value

  • Earnings are forecast to grow 40.35% per year


  • Profit margins (0.1%) are lower than last year (2.9%)

  • Large one-off items impacting financial results

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