3 Dividend Stocks On The ASX Yielding Up To 8.6%

Over the last 7 days, the Australian market has dropped 1.7%, but it is up 10% over the past year, with earnings expected to grow by 12% per annum over the next few years. In this context, identifying dividend stocks that offer strong yields and stable performance can be a prudent strategy for investors seeking reliable income and potential growth.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Perenti (ASX:PRN)	8.08%	★★★★★☆
Nick Scali (ASX:NCK)	4.40%	★★★★★☆
Collins Foods (ASX:CKF)	3.56%	★★★★★☆
Fiducian Group (ASX:FID)	4.71%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.69%	★★★★★☆
Super Retail Group (ASX:SUL)	6.91%	★★★★★☆
GrainCorp (ASX:GNC)	6.18%	★★★★★☆
National Storage REIT (ASX:NSR)	4.45%	★★★★★☆
Premier Investments (ASX:PMV)	4.05%	★★★★★☆
Grange Resources (ASX:GRR)	8.00%	★★★★☆☆

Click here to see the full list of 32 stocks from our Top ASX Dividend Stocks screener.

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

BlueScope Steel (ASX:BSL)

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

Overview: BlueScope Steel Limited produces and markets metal coated and painted steel building products across Australia, New Zealand, Asia, North America, and internationally with a market cap of A$8.70 billion.

Operations: BlueScope Steel Limited's revenue segments include Coated Products Asia (A$2.08 billion), Australian Steel Products (A$6.98 billion), North Star BlueScope Steel (A$3.84 billion), New Zealand & Pacific Islands (A$914.70 million), and Buildings and Coated Products North America (A$3.70 billion).

Dividend Yield: 3%

BlueScope Steel's dividend payments are well covered by earnings (payout ratio: 30.6%) and cash flows (cash payout ratio: 60.7%), though they have been volatile over the past decade. Recent announcements include a fully franked final dividend of A$0.30 per share and earnings results showing a decline in net income to A$805.7 million for FY2024 from A$1 billion last year, reflecting some financial instability despite an attractive valuation trading at 54% below estimated fair value.

• Unlock comprehensive insights into our analysis of BlueScope Steel stock in this dividend report.
• Upon reviewing our latest valuation report, BlueScope Steel's share price might be too pessimistic.

Shaver Shop Group (ASX:SSG)

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

Overview: Shaver Shop Group Limited (ASX:SSG) retails personal care and grooming products in Australia and New Zealand, with a market cap of A$154.59 million.

Operations: Shaver Shop Group Limited generates revenue primarily through retail store sales of specialist personal grooming products, amounting to A$219.37 million.

Dividend Yield: 8.6%

Shaver Shop Group's dividend payments are covered by earnings (payout ratio: 87%) and cash flows (cash payout ratio: 48.1%), though they have been volatile over the past eight years. The company declared a fully franked final dividend of A$0.055 per share, maintaining total dividends at A$0.102 per share for FY2024, consistent with last year despite a slight decline in net income to A$15.12 million from A$16.8 million in FY2023, indicating some financial stability challenges amidst attractive valuation trading at good value compared to peers and industry.

• Navigate through the intricacies of Shaver Shop Group with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Shaver Shop Group's current price could be quite moderate.

Southern Cross Electrical Engineering (ASX:SXE)

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

Overview: Southern Cross Electrical Engineering Limited offers electrical, instrumentation, communications, security, and maintenance services to the resources, commercial, and infrastructure sectors in Australia with a market cap of A$484.45 million.

Operations: Southern Cross Electrical Engineering Limited generates A$551.87 million in revenue from its electrical services segment, serving the resources, commercial, and infrastructure sectors in Australia.

Dividend Yield: 3.3%

Southern Cross Electrical Engineering recently announced a dividend of A$0.05 per share for the six months ended June 30, 2024, with a record date of September 25, 2024. The company's dividend yield is below the top tier in Australia but is well-covered by both earnings (payout ratio: 72%) and cash flows (cash payout ratio: 46.7%). Despite recent earnings growth and a reasonable valuation, its dividend payments have been volatile over the past decade.

• Click to explore a detailed breakdown of our findings in Southern Cross Electrical Engineering's dividend report.
• Our comprehensive valuation report raises the possibility that Southern Cross Electrical Engineering is priced higher than what may be justified by its financials.

Next Steps

• Click this link to deep-dive into the 32 companies within our Top ASX Dividend Stocks screener.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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