Top ASX Dividend Stocks To Consider In August 2024

Over the last 7 days, the Australian market has dropped 4.7%, but it has risen by 4.0% over the past year, with earnings expected to grow by 13% per annum in the coming years. In this context, a good dividend stock is one that offers reliable income and potential for growth despite short-term market fluctuations.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Lindsay Australia (ASX:LAU)	6.78%	★★★★★☆
Collins Foods (ASX:CKF)	3.26%	★★★★★☆
Nick Scali (ASX:NCK)	4.76%	★★★★★☆
Fiducian Group (ASX:FID)	4.29%	★★★★★☆
Centuria Capital Group (ASX:CNI)	7.48%	★★★★★☆
Eagers Automotive (ASX:APE)	7.35%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.72%	★★★★★☆
Charter Hall Group (ASX:CHC)	3.70%	★★★★★☆
Premier Investments (ASX:PMV)	4.39%	★★★★★☆
Diversified United Investment (ASX:DUI)	3.12%	★★★★★☆

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

Here we highlight a subset of our preferred stocks from the screener.

Beacon Lighting Group (ASX:BLX)

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

Overview: Beacon Lighting Group Limited (ASX:BLX) is a retailer of lighting products operating in Australia and internationally, with a market cap of A$526.26 million.

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

Dividend Yield: 3.6%

Beacon Lighting Group's dividend payments, while covered by both earnings (59.4% payout ratio) and cash flows (34.3% cash payout ratio), have been volatile over the past decade, with periods of significant drops exceeding 20%. Although the dividend yield of 3.58% is lower than the top 25% in Australia, BLX trades at a significant discount to its estimated fair value, potentially offering good value for investors seeking dividend stocks with growth potential.

• Dive into the specifics of Beacon Lighting Group here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Beacon Lighting Group is priced higher than what may be justified by its financials.

Diversified United Investment (ASX:DUI)

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

Overview: Diversified United Investment Limited, with a market cap of A$1.11 billion, is a publicly owned investment manager.

Operations: Diversified United Investment Limited generates revenue of A$51.05 million from its investment company segment.

Dividend Yield: 3.1%

Diversified United Investment offers a reliable dividend yield of 3.12%, which, while lower than the top 25% in the Australian market, has been stable and growing over the past decade. The company's dividends are well-covered by both earnings (87.8% payout ratio) and free cash flows (87.7% cash payout ratio), ensuring sustainability. Despite not being among the highest-yielding stocks, DUI's consistency makes it a dependable choice for dividend investors seeking stability.

• Take a closer look at Diversified United Investment's potential here in our dividend report.
• According our valuation report, there's an indication that Diversified United Investment's share price might be on the expensive side.

Southern Cross Electrical Engineering (ASX:SXE)

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

Overview: Southern Cross Electrical Engineering Limited (ASX:SXE) provides electrical, instrumentation, communication, and maintenance services in Australia and has a market cap of A$436.94 million.

Operations: Southern Cross Electrical Engineering Limited generates revenue primarily through the provision of electrical services, amounting to A$464.88 million.

Dividend Yield: 3%

Southern Cross Electrical Engineering's dividend yield of 3.01% is below the top 25% in Australia but has seen growth over the past decade despite being volatile. The dividends are covered by earnings (66.5% payout ratio) and free cash flows (78.2% cash payout ratio), indicating sustainability, though the track record remains unstable. Recent appointment of Michael McNulty as Chairman of the Audit and Risk Committee may strengthen governance and oversight, potentially benefiting shareholders long-term.

• Get an in-depth perspective on Southern Cross Electrical Engineering's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Southern Cross Electrical Engineering shares in the market.

Make It Happen

• Discover the full array of 31 Top ASX Dividend Stocks right here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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Curious About Other Options?

• 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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