As the Australian market responds positively to international developments, such as Trump's temporary tariff reprieve for China, investors are eyeing opportunities in dividend stocks that can provide stability and income amidst global uncertainties. In this environment, a good dividend stock is often characterized by its ability to maintain consistent payouts and demonstrate resilience against market volatility.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Bisalloy Steel Group (ASX:BIS) | 9.70% | ★★★★★☆ |
| IPH (ASX:IPH) | 7.28% | ★★★★★☆ |
| New Hope (ASX:NHC) | 9.95% | ★★★★★☆ |
| Sugar Terminals (NSX:SUG) | 8.28% | ★★★★★☆ |
| Accent Group (ASX:AX1) | 6.55% | ★★★★★☆ |
| Lindsay Australia (ASX:LAU) | 7.00% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.72% | ★★★★★☆ |
| Nick Scali (ASX:NCK) | 3.18% | ★★★★★☆ |
| Lycopodium (ASX:LYL) | 7.01% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.42% | ★★★★★☆ |
Click here to see the full list of 31 stocks from our Top ASX Dividend Stocks screener.
Let's dive into some prime choices out of the screener.
Amotiv (ASX:AOV)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Amotiv Limited, with a market cap of A$1.12 billion, operates through its subsidiaries to manufacture, import, distribute, and sell automotive products across Australia, New Zealand, Thailand, South Korea, France, and the United States.
Operations: Amotiv Limited generates revenue through its segments: Powertrain & Undercar (A$322.90 million), Lighting Power & Electrical (A$329.97 million), and 4WD Accessories & Trailering (A$345.41 million).
Dividend Yield: 4.9%
Amotiv offers a mixed dividend profile. Its dividends are well-covered by earnings and cash flows, with payout ratios of 70.1% and 45%, respectively, suggesting sustainability. However, the dividend yield of 4.9% lags behind top-tier Australian payers. Despite a history of volatility over the past decade, dividends have grown overall. The stock trades at good value compared to peers and below fair value estimates, indicating potential upside according to analysts' price targets.
- Take a closer look at Amotiv's potential here in our dividend report.
- Upon reviewing our latest valuation report, Amotiv's share price might be too pessimistic.
New Hope (ASX:NHC)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: New Hope Corporation Limited is involved in the exploration, development, production, and processing of coal as well as oil and gas properties, with a market cap of A$3.31 billion.
Operations: New Hope Corporation Limited generates revenue primarily from its Coal Mining operations in NSW, amounting to A$1.58 billion, and Coal Mining in QLD (including Treasury and Investments), contributing A$315.68 million.
Dividend Yield: 9.9%
New Hope's dividend profile presents both strengths and challenges. The company has declared a fully franked interim dividend of A$0.19 per share, with its 9.95% yield placing it among the top 25% in Australia. Dividends are covered by earnings and cash flows, with payout ratios of 61.4% and 67.1%, respectively, suggesting sustainability despite past volatility. Recent earnings growth supports this; however, future declines are forecasted. A recent A$100 million share buyback could enhance shareholder returns further.
- Click here and access our complete dividend analysis report to understand the dynamics of New Hope.
- According our valuation report, there's an indication that New Hope's share price might be on the cheaper side.
Ridley (ASX:RIC)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ridley Corporation Limited, with a market cap of A$868.98 million, operates in Australia providing animal nutrition solutions through its subsidiaries.
Operations: Ridley Corporation Limited generates revenue through its Bulk Stockfeeds segment, contributing A$894.26 million, and its Packaged/Ingredients segment, which adds A$389.70 million.
Dividend Yield: 3.5%
Ridley Corporation's dividend profile shows mixed attributes for investors. Recent dividend increases and a payout ratio of 75% indicate coverage by earnings, while a cash payout ratio of 35.5% suggests sustainability. However, dividends have been volatile over the past decade, highlighting reliability concerns. Ridley's recent A$125 million equity offering could impact future payouts. Despite trading at a discount to its estimated fair value, its current yield of 3.49% is below Australia's top payers' average yield of 6.19%.
- Unlock comprehensive insights into our analysis of Ridley stock in this dividend report.
- Insights from our recent valuation report point to the potential undervaluation of Ridley shares in the market.
Key Takeaways
- Gain an insight into the universe of 31 Top ASX Dividend Stocks by clicking here.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
Interested In Other Possibilities?
- 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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