Top ASX Dividend Stocks To Consider: Amotiv And Two Others

Over the last 7 days, the Australian market has dropped 2.2%, but it is up 5.2% over the past year with earnings forecasted to grow by 13% annually. In this context, identifying solid dividend stocks can be a prudent strategy for investors seeking steady income and potential growth; here are three ASX dividend stocks to consider: Amotiv and two others.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Lindsay Australia (ASX:LAU)	6.67%	★★★★★☆
Collins Foods (ASX:CKF)	3.21%	★★★★★☆
Nick Scali (ASX:NCK)	4.59%	★★★★★☆
Centuria Capital Group (ASX:CNI)	7.27%	★★★★★☆
Eagers Automotive (ASX:APE)	7.24%	★★★★★☆
Fiducian Group (ASX:FID)	4.07%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.70%	★★★★★☆
Bapcor (ASX:BAP)	4.29%	★★★★★☆
Charter Hall Group (ASX:CHC)	3.66%	★★★★★☆
Premier Investments (ASX:PMV)	4.34%	★★★★★☆

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

Let's review some notable picks from our screened stocks.

Amotiv (ASX:AOV)

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

Overview: Amotiv Limited, with a market cap of A$1.43 billion, manufactures, imports, distributes, and sells automotive products across Australia, New Zealand, Thailand, South Korea, France, and the United States through its subsidiaries.

Operations: Amotiv Limited's revenue segments consist of APG at A$303.59 million and Automotive at A$652.05 million.

Dividend Yield: 4%

Amotiv's dividend yield of 4% is below the top 25% of Australian dividend payers. While its dividends have increased over the past decade, they have been unreliable and volatile, with significant annual drops. The payout ratio stands at a manageable 53.3%, and cash flow coverage is strong at 27.3%. Despite trading at a good value—25% below estimated fair value—its unstable dividend track record remains a concern for investors seeking consistent income.

• Dive into the specifics of Amotiv here with our thorough dividend report.
• According our valuation report, there's an indication that Amotiv's share price might be on the cheaper side.

Collins Foods (ASX:CKF)

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

Overview: Collins Foods Limited operates, manages, and administers restaurants in Australia and Europe with a market cap of A$1.03 billion.

Operations: Collins Foods Limited generates revenue from its Taco Bell restaurants (A$54.38 million), KFC restaurants in Europe (A$313.47 million), and KFC restaurants in Australia (A$1.12 billion).

Dividend Yield: 3.2%

Collins Foods reported a significant earnings increase, with net income rising from A$12.75 million to A$76.72 million year-over-year. The company declared a cash dividend of A$0.155 per share, maintaining reliable and growing dividends over the past decade with a payout ratio of 59.1%. Although its dividend yield of 3.21% is lower than the top 25% in Australia, it remains well-covered by both earnings and free cash flow (35.2%).

• Click here to discover the nuances of Collins Foods with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Collins Foods is trading behind its estimated value.

Nick Scali (ASX:NCK)

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

Overview: Nick Scali Limited, with a market cap of A$1.30 billion, is involved in sourcing and retailing household furniture and related accessories across Australia and New Zealand.

Operations: Nick Scali Limited generates its revenue through the sourcing and retailing of household furniture and related accessories in Australia and New Zealand.

Dividend Yield: 4.6%

Nick Scali's dividend payments are well-supported by earnings (67.9% payout ratio) and free cash flow (58.1% cash payout ratio). Despite a recent decline in net income to A$80.61 million for the year ended June 30, 2024, dividends have remained stable and reliable over the past decade. Trading at a discount to its estimated fair value, Nick Scali offers an attractive dividend yield of 4.59%, though this is lower than the top quartile in Australia.

• Navigate through the intricacies of Nick Scali with our comprehensive dividend report here.
• Our expertly prepared valuation report Nick Scali implies its share price may be lower than expected.

Taking Advantage

• Reveal the 31 hidden gems among our Top ASX Dividend Stocks screener with a single click 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready To Venture Into Other Investment Styles?

• 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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