Top ASX Dividend Stocks To Consider In May 2025

As the ASX200 opens slightly higher amid optimism from a new US-UK trade deal framework, Australian investors are keeping a close eye on dividend stocks that can offer stability in uncertain times. In this environment, stocks with consistent dividend payouts and strong financial health become particularly attractive for those seeking reliable income streams.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Bisalloy Steel Group (ASX:BIS)	9.73%	★★★★★☆
IPH (ASX:IPH)	7.51%	★★★★★☆
Accent Group (ASX:AX1)	6.70%	★★★★★☆
Sugar Terminals (NSX:SUG)	8.28%	★★★★★☆
Super Retail Group (ASX:SUL)	8.42%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.90%	★★★★★☆
Nick Scali (ASX:NCK)	3.23%	★★★★★☆
Lycopodium (ASX:LYL)	7.18%	★★★★★☆
Lindsay Australia (ASX:LAU)	6.58%	★★★★★☆
Fiducian Group (ASX:FID)	4.41%	★★★★★☆

Click here to see the full list of 31 stocks from our Top ASX Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Macquarie Group (ASX:MQG)

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

Overview: Macquarie Group Limited is a diversified financial services company operating across Australia, New Zealand, the Americas, Europe, the Middle East, Africa, and Asia with a market cap of A$73.99 billion.

Operations: Macquarie Group Limited generates revenue through its diversified financial services operations across various regions, including Australia, New Zealand, the Americas, Europe, the Middle East, Africa, and Asia.

Dividend Yield: 3.2%

Macquarie Group's recent announcement of a FY25 final ordinary dividend of A$3.90 per share, contributing to a total FY25 dividend of A$6.50 per share, reflects a payout ratio within its policy range of 50-70%. Despite an increase in net income to A$3.72 billion, the company's dividends have been unreliable and volatile over the past decade. Additionally, with 57% of liabilities from higher-risk funding sources and a low allowance for bad loans, caution is advised for dividend-focused investors.

• Take a closer look at Macquarie Group's potential here in our dividend report.
• Our expertly prepared valuation report Macquarie Group implies its share price may be too high.

Nick Scali (ASX:NCK)

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

Overview: Nick Scali Limited, with a market cap of A$1.59 billion, is involved in sourcing and retailing household furniture and related accessories across Australia, the United Kingdom, and New Zealand.

Operations: Nick Scali Limited generates revenue primarily from its retailing of furniture segment, which amounts to A$492.63 million.

Dividend Yield: 3.2%

Nick Scali offers a stable dividend profile with its payments reliably covered by earnings (78.2% payout ratio) and cash flows (63.7% cash payout ratio). Over the past decade, dividends have increased steadily, although the current yield of 3.23% is below top-tier Australian payers. The stock trades at a discount to its estimated fair value, suggesting potential upside. Recent executive changes include Kylie Archer's appointment as CFO, following Sheila Lines' retirement announcement after her strategic contributions to the company's UK expansion.

• Delve into the full analysis dividend report here for a deeper understanding of Nick Scali.
• Our valuation report unveils the possibility Nick Scali's shares may be trading at a premium.

Sugar Terminals (NSX:SUG)

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

Overview: Sugar Terminals Limited offers storage and handling solutions for bulk sugar and other commodities in Australia, with a market cap of A$356.40 million.

Operations: Sugar Terminals Limited generates revenue primarily from the sugar industry, amounting to A$115.01 million.

Dividend Yield: 8.3%

Sugar Terminals Limited's dividend yield of 8.28% ranks in the top 25% among Australian payers, yet its sustainability is questionable due to a high payout ratio of 91.4%. Despite stable and reliable dividends over the past decade, earnings only marginally cover payouts. The recent cash dividend announcement highlights ongoing distributions, but illiquid shares pose potential risks for investors seeking liquidity. Trading significantly below estimated fair value suggests possible undervaluation opportunities despite coverage concerns.

• Unlock comprehensive insights into our analysis of Sugar Terminals stock in this dividend report.
• According our valuation report, there's an indication that Sugar Terminals' share price might be on the cheaper side.

Make It Happen

• Unlock our comprehensive list of 31 Top ASX Dividend Stocks by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Looking For Alternative Opportunities?

• 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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