ASX Dividend Stocks Featuring Three Top Picks

The Australian stock market recently experienced a dip, with the ASX200 closing down 0.38% at 7,969 points, as sectors like Real Estate and IT faced notable declines. In such fluctuating conditions, dividend stocks can offer investors a measure of stability and income through regular payouts, making them an attractive option for those seeking to navigate market volatility effectively.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 30 stocks from our Top ASX Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Diversified United Investment (ASX:DUI)

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

Overview: Diversified United Investment Limited is a publicly owned investment manager with a market capitalization of approximately A$1.10 billion.

Operations: Diversified United Investment Limited generates revenue primarily from its investment company segment, amounting to A$46.41 million.

Dividend Yield: 3.1%

Diversified United Investment's dividend yield of 3.11% is below the top quartile in Australia, but its dividends have been stable and growing over the past decade. Despite this growth, the high payout ratio of 94.2% indicates dividends are not well covered by earnings, though cash flows cover them at an 89.4% cash payout ratio. Recent announcements affirm a franked dividend of A$0.07 per share for December 2025, highlighting ongoing reliability despite coverage concerns.

• Click here to discover the nuances of Diversified United Investment with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, Diversified United Investment's share price might be too optimistic.

GR Engineering Services (ASX:GNG)

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

Overview: GR Engineering Services Limited offers engineering, procurement, and construction services to the mining and mineral processing sectors both in Australia and internationally, with a market cap of A$499.89 million.

Operations: GR Engineering Services Limited generates revenue from two primary segments: Mineral Processing, contributing A$412.30 million, and Oil and Gas, contributing A$96.61 million.

Dividend Yield: 6.4%

GR Engineering Services' dividend yield of 6.35% ranks in the top quartile of Australian payers, supported by a cash payout ratio of 35.6%, indicating robust coverage by cash flows. Despite earnings growth and a recent increase to A$0.10 per share, dividends have been volatile over the past decade with an 86% payout ratio suggesting potential sustainability concerns. Recent earnings show significant sales growth to A$272.11 million, bolstering financial stability for future dividends despite past inconsistencies.

• Get an in-depth perspective on GR Engineering Services' performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that GR Engineering Services is priced lower than what may be justified by its financials.

IVE Group (ASX:IGL)

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

Overview: IVE Group Limited operates in the marketing business in Australia, with a market capitalization of approximately A$380.05 million.

Operations: IVE Group Limited's revenue primarily comes from its advertising segment, which generated A$975.43 million.

Dividend Yield: 7.3%

IVE Group's dividend yield of 7.32% is among the top quartile in Australia, with a payout ratio of 66.7% indicating coverage by earnings and a low cash payout ratio of 26.8%, suggesting strong cash flow support. Despite recent earnings growth to A$27.09 million, dividends have been volatile over nine years, raising sustainability concerns. A recent buyback initiative worth A$10 million reflects strategic capital management amidst high debt levels and evolving governance structure changes.

• Navigate through the intricacies of IVE Group with our comprehensive dividend report here.
• Our valuation report unveils the possibility IVE Group's shares may be trading at a discount.

Taking Advantage

• Click through to start exploring the rest of the 27 Top ASX Dividend Stocks now.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Looking For Alternative Opportunities?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com