Top 3 ASX Dividend Stocks For Reliable Income

The Australian market has recently experienced a positive shift, with the ASX200 up 1.3% and almost every sector showing gains, largely buoyed by strong performances in the tech sector despite broader concerns about an AI bubble. In this context of renewed optimism and market recovery, dividend stocks offer a compelling opportunity for investors seeking reliable income streams amidst fluctuating sentiments.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Treasury Wine Estates (ASX:TWE)	7.08%	★★★★★☆
Super Retail Group (ASX:SUL)	5.85%	★★★★★☆
Sugar Terminals (NSX:SUG)	7.90%	★★★★★☆
Steadfast Group (ASX:SDF)	3.74%	★★★★★☆
Smartgroup (ASX:SIQ)	5.99%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.86%	★★★★★☆
Lindsay Australia (ASX:LAU)	6.28%	★★★★★☆
Kina Securities (ASX:KSL)	7.69%	★★★★★☆
Fiducian Group (ASX:FID)	4.20%	★★★★★☆
Accent Group (ASX:AX1)	5.83%	★★★★★☆

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

We're going to check out a few of the best picks from our screener tool.

Diversified United Investment (ASX:DUI)

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

Overview: Diversified United Investment Limited is a publicly owned investment manager with a market cap of A$1.13 billion.

Operations: Diversified United Investment Limited generates revenue primarily from its investment company segment, totaling A$46.71 million.

Dividend Yield: 3%

Diversified United Investment's dividends have been stable and reliable over the past decade, with consistent growth. However, its high payout ratio of 90.8% suggests that dividends are not well covered by earnings, raising sustainability concerns. Despite a net income increase to A$37.99 million for the year ending June 2025, insider selling in recent months may indicate caution among stakeholders. The dividend yield of 3.05% is below Australia's top tier payers but remains attractive for some investors seeking stability over high returns.

• Get an in-depth perspective on Diversified United Investment's performance by reading our dividend report here.
• Our valuation report unveils the possibility Diversified United Investment's shares may be trading at a premium.

JB Hi-Fi (ASX:JBH)

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

Overview: JB Hi-Fi Limited is a retailer specializing in home consumer products, with a market cap of A$10.48 billion.

Operations: JB Hi-Fi Limited generates revenue through its segments, including E & S with A$225.20 million, The Good Guys at A$2.87 billion, JB Hi-Fi Australia contributing A$7.10 billion, and JB Hi-Fi New Zealand at A$361.40 million.

Dividend Yield: 3.9%

JB Hi-Fi's dividend payments, though covered by earnings and cash flows with a payout ratio of 65%, have been volatile over the past decade. Despite this instability, dividends have increased over the last 10 years. Trading at 34.2% below its estimated fair value, JB Hi-Fi offers good relative value compared to peers. However, significant insider selling in recent months could be a concern for investors prioritizing dividend reliability and stability over potential capital appreciation.

• Click here to discover the nuances of JB Hi-Fi with our detailed analytical dividend report.
• Our valuation report here indicates JB Hi-Fi may be undervalued.

Smartgroup (ASX:SIQ)

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

Overview: Smartgroup Corporation Ltd, with a market cap of A$1.09 billion, offers employee management services in Australia.

Operations: Smartgroup Corporation Ltd generates revenue through its Vehicle Services segment, which contributes A$23.95 million, and its Outsourced Administration segment, which accounts for A$296.66 million.

Dividend Yield: 6%

Smartgroup's dividend, yielding 5.99%, ranks in the top 25% of Australian payers and is covered by both earnings (64.5% payout ratio) and cash flows (86.5% cash payout ratio). Despite this, its dividend history has been volatile over the past decade. Recent earnings growth supports sustainability, with net income rising to A$38.08 million for H1 2025 from A$34.26 million a year ago, yet its removal from key indices may affect investor sentiment focused on stable dividends.

• Take a closer look at Smartgroup's potential here in our dividend report.
• The analysis detailed in our Smartgroup valuation report hints at an deflated share price compared to its estimated value.

Next Steps

• Click through to start exploring the rest of the 28 Top ASX Dividend Stocks now.
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• 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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