Stock Analysis

3 ASX Dividend Stocks Yielding Up To 8.4%

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Amidst a modest rise in the ASX200, up 0.45% to 8,330 points, and steady unemployment rates reflecting a generally weak economic state, Australian investors are increasingly looking towards dividend stocks as a stable income source. With sectors like IT and Financials showing positive performance, identifying strong dividend stocks can be crucial for those seeking reliable returns in an unpredictable market environment.

Top 10 Dividend Stocks In Australia

NameDividend YieldDividend Rating
Perenti (ASX:PRN)6.84%★★★★★☆
Nick Scali (ASX:NCK)4.67%★★★★★☆
Super Retail Group (ASX:SUL)8.11%★★★★★☆
Collins Foods (ASX:CKF)3.31%★★★★★☆
Fiducian Group (ASX:FID)4.38%★★★★★☆
MFF Capital Investments (ASX:MFF)3.28%★★★★★☆
National Storage REIT (ASX:NSR)4.45%★★★★★☆
Premier Investments (ASX:PMV)4.16%★★★★★☆
Sugar Terminals (NSX:SUG)7.42%★★★★☆☆
CTI Logistics (ASX:CLX)5.63%★★★★☆☆

Click here to see the full list of 36 stocks from our Top ASX Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Ampol (ASX:ALD)

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

Overview: Ampol Limited is engaged in the purchasing, refining, distributing, and marketing of petroleum products across Australia, New Zealand, Singapore, and the United States with a market cap of A$6.78 billion.

Operations: Ampol Limited's revenue segments include New Zealand (A$5.49 billion), Convenience Retail (A$5.97 billion), and Fuels and Infrastructure (A$34.46 billion).

Dividend Yield: 8.4%

Ampol's dividend yield of 8.43% ranks in the top 25% of Australian dividend payers, yet its sustainability is questionable due to a high cash payout ratio of 115.2%, indicating dividends are not well covered by free cash flow. Although earnings have surged significantly, Ampol's dividends have been volatile and unreliable over the past decade. Trading at A$56.9 billion below estimated fair value, it holds potential for value investors despite high debt levels.

ASX:ALD Dividend History as at Nov 2024

Nick Scali (ASX:NCK)

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

Overview: Nick Scali Limited, with a market cap of A$1.21 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 of A$468.19 million from its furniture retailing operations.

Dividend Yield: 4.7%

Nick Scali offers a stable dividend yield of 4.67%, though it falls short of the top tier in Australia. Dividends are well-covered by earnings and cash flows, with payout ratios at 68.9% and 55%, respectively, indicating sustainability. Over the past decade, dividends have grown steadily without volatility. Despite recent shareholder dilution, Nick Scali trades at a significant discount to its estimated fair value, presenting potential value for investors seeking reliable income streams.

ASX:NCK Dividend History as at Nov 2024

Shaver Shop Group (ASX:SSG)

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

Overview: Shaver Shop Group Limited operates as a retailer of personal care and grooming products in Australia and New Zealand, with a market cap of A$175.56 million.

Operations: The company's revenue primarily comes from retail store sales of specialist personal grooming products, amounting to A$219.37 million.

Dividend Yield: 7.6%

Shaver Shop Group's dividend yield of 7.61% is among the top 25% in Australia, supported by an earnings payout ratio of 87% and a cash payout ratio of 48.1%. While dividends have grown over eight years, the track record remains volatile and unreliable. Recent earnings showed a decline with net income at A$15.12 million, yet dividends remain consistent at A$0.102 per share for fiscal year 2024, reflecting cautious financial management amidst insider selling concerns.

ASX:SSG Dividend History as at Nov 2024

Turning Ideas Into Actions

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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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