Stock Analysis

Beacon Lighting Group And 2 Other ASX Dividend Stocks To Consider

Published July 22, 2024

Over the past week, the Australian market has shown stability with no significant changes, while it has experienced a 9.1% increase over the last year. With earnings projected to grow by 14% annually in the coming years, dividend stocks like Beacon Lighting Group offer potential for investors looking for steady income in a growing market.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Collins Foods (ASX:CKF)	3.13%	★★★★★☆
Fortescue (ASX:FMG)	9.29%	★★★★★☆
Centuria Capital Group (ASX:CNI)	6.93%	★★★★★☆
Nick Scali (ASX:NCK)	4.88%	★★★★★☆
Fiducian Group (ASX:FID)	4.15%	★★★★★☆
Eagers Automotive (ASX:APE)	7.04%	★★★★★☆
Charter Hall Group (ASX:CHC)	3.56%	★★★★★☆
Premier Investments (ASX:PMV)	4.40%	★★★★★☆
GrainCorp (ASX:GNC)	6.30%	★★★★★☆
Diversified United Investment (ASX:DUI)	3.08%	★★★★★☆

Click here to see the full list of 28 stocks from our Top ASX Dividend Stocks screener.

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

Beacon Lighting Group (ASX:BLX)

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

Overview: Beacon Lighting Group Limited operates as a retailer of lighting products both in Australia and internationally, with a market capitalization of approximately A$535.33 million.

Operations: Beacon Lighting Group Limited generates its revenue primarily through the sale of light fittings, fans, and energy-efficient products, totaling A$312.87 million.

Dividend Yield: 3.5%

Beacon Lighting Group (BLX) offers a dividend yield of 3.52%, which is modest compared to the top Australian dividend stocks. Despite this, BLX's dividends are supported by a cash payout ratio of 34.3% and an earnings payout ratio of 59.4%, indicating sustainability from both earnings and cash flow perspectives. However, its dividend history shows volatility and unreliability over the past decade, with significant fluctuations including annual drops over 20%. Additionally, BLX is currently trading at 58% below estimated fair value, suggesting potential undervaluation.

Centuria Capital Group (ASX:CNI)

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

Overview: Centuria Capital Group is an investment manager based in Australia, specializing in the marketing and management of investment products with a market capitalization of approximately A$1.38 billion.

Operations: Centuria Capital Group generates revenue through various segments including Development (A$40.07 million), Benefit Funds (A$10.35 million), Co-Investments (A$53.33 million), Non-Operating Items (A$51.53 million), Property Funds Management (A$178.53 million), Investment Bonds Management (A$9.79 million), and Property and Development Finance (A$17.46 million).

Dividend Yield: 6.9%

Centuria Capital Group's dividends, with a recent total of A$0.05 per security, show a mixed sustainability profile. While earnings are expected to grow by 17.31% annually, the company's dividend track record is unstable and volatile over the past decade. Despite this, both earnings (76.1% payout ratio) and cash flows (73.5% cash payout ratio) adequately cover these payments. Additionally, Centuria trades at 37.2% below its estimated fair value, potentially indicating undervaluation in the market context.

Diversified United Investment (ASX:DUI)

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

Overview: Diversified United Investment Limited is a publicly owned investment manager with a market capitalization of approximately A$1.12 billion.

Operations: Diversified United Investment Limited generates its revenue primarily through its operations as an investment company, totaling approximately A$51.05 million.

Dividend Yield: 3.1%

Diversified United Investment maintains a stable dividend track record over the past decade, providing a consistent yield of 3.08%. Despite this reliability, its dividend yield is lower than the top quartile of Australian dividend stocks at 6.28%. Both earnings and cash flows substantiate its current dividends with payout ratios of 87.8% and 87.7%, respectively, suggesting moderate sustainability but limited room for significant growth in payouts without affecting financial stability.

Key Takeaways

Dive into all 28 of the Top ASX Dividend Stocks we have identified here.
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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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