3 ASX Dividend Stocks With Yields Up To 6.7 Percent

The Australian market has been buoyant recently, with the ASX200 nearing record highs following a series of interest rate cuts by the Reserve Bank of Australia. In this environment, dividend stocks can offer investors steady income streams, especially when yields are attractive and align well with current economic conditions.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
Super Retail Group (ASX:SUL)	7.51%	★★★★★☆
Sugar Terminals (NSX:SUG)	8.12%	★★★★★☆
New Hope (ASX:NHC)	8.91%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.51%	★★★★★☆
Macquarie Group (ASX:MQG)	3.03%	★★★★☆☆
Lycopodium (ASX:LYL)	6.34%	★★★★★☆
Lindsay Australia (ASX:LAU)	6.71%	★★★★★☆
IPH (ASX:IPH)	6.46%	★★★★★☆
Fiducian Group (ASX:FID)	3.84%	★★★★★☆
Accent Group (ASX:AX1)	6.58%	★★★★★☆

Click here to see the full list of 29 stocks from our Top ASX Dividend Stocks screener.

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

Lindsay Australia (ASX:LAU)

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

Overview: Lindsay Australia Limited operates in the transport, logistics, and rural supply sectors serving the food processing, food services, fresh produce, and horticulture industries across Australia with a market cap of A$276.49 million.

Operations: Lindsay Australia Limited's revenue is derived from its Rural segment (A$160.92 million), Hunters (A$100.09 million), Corporate (A$5.15 million), and Transport services (A$573.35 million).

Dividend Yield: 6.7%

Lindsay Australia offers a compelling dividend yield of 6.71%, placing it in the top quartile of Australian dividend payers. Its dividends are well-covered by earnings and cash flows, with payout ratios at 67.1% and 26.1%, respectively, suggesting sustainability despite historical volatility. Recent leadership changes, including the appointment of Robert Miller as executive director, may bolster strategic decision-making and potentially stabilize future payouts amidst ongoing growth efforts such as the acquisition of SRT Logistics Pty Ltd.

• Take a closer look at Lindsay Australia's potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Lindsay Australia shares in the market.

Smartgroup (ASX:SIQ)

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

Overview: Smartgroup Corporation Ltd, with a market cap of A$1.08 billion, offers employee management services in Australia.

Operations: Smartgroup Corporation Ltd generates revenue through its Vehicle Services segment, which accounts for A$21.87 million, and its Outsourced Administration segment, contributing A$287.87 million.

Dividend Yield: 6.2%

Smartgroup offers a dividend yield of 6.21%, ranking in the top quartile among Australian dividend payers. However, its dividends have been volatile over the past decade and are not well-covered by free cash flows, with a high cash payout ratio of 135.6%. Despite being undervalued relative to peers and industry benchmarks, sustainability concerns arise as recent earnings growth does not fully support current payout levels. Recent address changes do not impact financial strategies directly.

• Delve into the full analysis dividend report here for a deeper understanding of Smartgroup.
• Our valuation report here indicates Smartgroup may be undervalued.

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$527.50 million.

Operations: Southern Cross Electrical Engineering Limited generates revenue of A$693.73 million from its electrical services segment, serving the resources, commercial, and infrastructure sectors in Australia.

Dividend Yield: 3.8%

Southern Cross Electrical Engineering's dividends are supported by a low cash payout ratio of 26.9% and a reasonable earnings payout ratio of 69.4%. However, its dividend yield of 3.76% is below the top quartile in Australia, and payments have been volatile over the past decade. Despite these challenges, the stock trades at a discount to its estimated fair value and has seen significant earnings growth recently, with further growth anticipated.

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

Next Steps

• Click here to access our complete index of 29 Top ASX Dividend Stocks.
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Contemplating Other Strategies?

• 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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