ASX Dividend Stocks To Consider For Reliable Income

Amidst a mixed performance on the ASX200, with Real Estate and Discretionary sectors buoying the index while Materials and Health Care faced declines, investors are keenly eyeing dividend stocks for reliable income. In such fluctuating market conditions, a good dividend stock typically offers stable payouts and has a resilient business model that can withstand economic pressures like those currently impacting various sectors.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Super Retail Group (ASX:SUL)	7.20%	★★★★★☆
Sugar Terminals (NSX:SUG)	8.08%	★★★★★☆
Ricegrowers (ASX:SGLLV)	4.59%	★★★★☆☆
New Hope (ASX:NHC)	9.34%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.90%	★★★★★☆
Lycopodium (ASX:LYL)	6.12%	★★★★★☆
Lindsay Australia (ASX:LAU)	6.75%	★★★★★☆
IPH (ASX:IPH)	6.26%	★★★★★☆
Fiducian Group (ASX:FID)	4.08%	★★★★★☆
Accent Group (ASX:AX1)	6.31%	★★★★★☆

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

We'll examine a selection from our screener results.

Australian United Investment (ASX:AUI)

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

Overview: Australian United Investment Company Limited is a publicly owned investment manager with a market cap of A$1.43 billion.

Operations: Australian United Investment Company Limited generates revenue primarily from its investment segment, amounting to A$58.38 million.

Dividend Yield: 3.2%

Australian United Investment's dividend payments have been reliable and stable over the past decade, showing consistent growth with minimal volatility. However, the current dividend yield of 3.22% is lower than the top quartile in Australia. Despite being covered by cash flows with an 89.7% cash payout ratio, the dividends are not well-supported by earnings due to a high payout ratio of 91.9%, raising concerns about long-term sustainability without improved earnings coverage.

• Click here to discover the nuances of Australian United Investment with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Australian United Investment shares in the market.

Bisalloy Steel Group (ASX:BIS)

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

Overview: Bisalloy Steel Group Limited manufactures and sells quenched and tempered, high-tensile, and abrasion-resistant steel plates in Australia, Indonesia, Thailand, and internationally with a market cap of A$204.04 million.

Operations: Bisalloy Steel Group Limited generates revenue through the production and distribution of specialized steel plates designed for high-tensile strength and abrasion resistance across various markets, including Australia, Indonesia, Thailand, and beyond.

Dividend Yield: 4.5%

Bisalloy Steel Group's dividend payments are covered by both earnings and cash flows, with a payout ratio of 81.2% and a cash payout ratio of 40%. However, the dividends have been unreliable and volatile over the past decade. While trading at A$93.6% below its estimated fair value, BIS's current yield of 4.53% is lower than the top quartile in Australia. Earnings growth forecasts suggest potential for improved dividend stability if realized.

• Get an in-depth perspective on Bisalloy Steel Group's performance by reading our dividend report here.
• The analysis detailed in our Bisalloy Steel Group valuation report hints at an deflated share price compared to its estimated value.

Lycopodium (ASX:LYL)

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

Overview: Lycopodium Limited offers engineering and project delivery services across the resources, rail infrastructure, and industrial processes sectors in Australia, with a market cap of A$489.54 million.

Operations: Lycopodium Limited's revenue is primarily derived from its Resources segment (A$347.83 million), with additional contributions from Process Industries (A$10.84 million) and Rail Infrastructure (A$10.14 million).

Dividend Yield: 6.1%

Lycopodium's dividend yield of 6.12% ranks in the top 25% among Australian dividend payers, with dividends covered by earnings (payout ratio: 43.2%) and cash flows (cash payout ratio: 80.8%). Despite a decade-long increase, its dividends have been volatile and unreliable. Recent earnings showed a decline in net income to A$42.22 million from A$50.71 million last year, potentially impacting future payouts amidst significant insider selling over the past quarter.

• Unlock comprehensive insights into our analysis of Lycopodium stock in this dividend report.
• Our valuation report here indicates Lycopodium may be undervalued.

Next Steps

• Investigate our full lineup of 27 Top ASX Dividend Stocks right here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Ready For A Different Approach?

• 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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