Top ASX Dividend Stocks To Consider In June 2025

As the Australian market shows signs of a modest advance, buoyed by positive U.S. inflation data and energy sector fluctuations, investors are keeping a keen eye on dividend stocks for stable income amid economic uncertainties. In this environment, selecting dividend stocks that demonstrate resilience to rising power costs and global market shifts can be crucial for maintaining a balanced investment portfolio.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 27 stocks from our Top ASX Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Lindsay Australia (ASX:LAU)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Lindsay Australia Limited offers integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, and horticulture sectors in Australia with a market cap of A$228.36 million.

Operations: Lindsay Australia Limited generates revenue through its Rural segment (A$160.92 million), Hunters segment (A$100.09 million), Corporate segment (A$5.15 million), and Transport segment (A$573.35 million).

Dividend Yield: 6.8%

Lindsay Australia's dividend yield of 6.81% places it in the top quartile of Australian dividend payers, supported by a sustainable payout ratio of 67.1% and a low cash payout ratio of 21.8%. Despite recent volatility in dividends, an increase to A$0.023 per share was announced for April 2025. The stock trades at a significant discount to fair value, though profit margins have decreased from last year’s figures, currently at 2.9%.

• Click here to discover the nuances of Lindsay Australia with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Lindsay Australia's current price could be quite moderate.

Smartgroup (ASX:SIQ)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Smartgroup Corporation Ltd, with a market cap of A$972.35 million, offers employee management services in Australia.

Operations: Smartgroup Corporation Ltd generates revenue primarily from its Vehicle Services, which contributed A$21.87 million, and Outsourced Administration services, amounting to A$287.87 million.

Dividend Yield: 6.9%

Smartgroup's dividend yield of 6.9% ranks it among the top 25% of Australian dividend payers, though its sustainability is questionable due to a high cash payout ratio of 135.6%. While dividends have grown over the past decade, they have been volatile and not well covered by free cash flows. The stock trades at a significant discount to fair value and analysts anticipate a price increase, reflecting potential upside despite recent earnings growth challenges.

• Click here and access our complete dividend analysis report to understand the dynamics of Smartgroup.
• The analysis detailed in our Smartgroup valuation report hints at an deflated share price compared to its estimated value.

Southern Cross Electrical Engineering (ASX:SXE)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Southern Cross Electrical Engineering Limited offers electrical, instrumentation, communications, security, and maintenance services to the resources, commercial, and infrastructure sectors in Australia with a market cap of A$436.28 million.

Operations: Southern Cross Electrical Engineering Limited generates revenue of A$693.73 million from its electrical services provision across various sectors in Australia.

Dividend Yield: 3.6%

Southern Cross Electrical Engineering's dividend yield of 3.64% is modest compared to top Australian payers. Despite a volatile dividend history, payments are well-covered by earnings and cash flows, with payout ratios of 69.4% and 21.5%, respectively. The stock trades at a good value, being 27% below its estimated fair value, with analysts expecting a price rise of nearly 46%. Earnings growth has been robust at 42.3%, supporting potential future dividends despite past instability.

• Dive into the specifics of Southern Cross Electrical Engineering here with our thorough dividend report.
• Our valuation report here indicates Southern Cross Electrical Engineering may be undervalued.

Taking Advantage

• Gain an insight into the universe of 27 Top ASX Dividend Stocks by clicking here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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