Yahoo Finance

The Australian market has shown robust performance, climbing 1.4% in the last week and achieving a 10% increase over the past year, with earnings projected to grow by 13% annually. In this environment, dividend stocks that offer high yields can be particularly appealing for investors looking for both income and potential growth.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 27 stocks from our Top ASX Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Fortescue

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

Overview: Fortescue Ltd is an Australian company specializing in the exploration, development, production, processing, and sale of iron ore, operating both domestically and internationally with a market capitalization of approximately A$66.41 billion.

Operations: Fortescue Ltd generates revenue primarily through its Metals segment, which accounted for A$18.47 billion, with an additional A$79 million from its Energy operations.

Dividend Yield: 9.2%

Fortescue's dividends, yielding 9.16%, rank in the top 25% in Australia, though its dividend history has been unstable over the past decade with significant fluctuations and an average annual drop of over 20%. Despite this, both earnings and cash flows reasonably cover the payouts, with payout ratios at 74.2% and 73.1%, respectively. However, earnings are projected to decline by an average of 19.2% annually over the next three years, posing a risk to future dividend sustainability.

• Take a closer look at Fortescue's potential here in our dividend report.

• Our valuation report unveils the possibility Fortescue's shares may be trading at a discount.

JB Hi-Fi

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

Overview: JB Hi-Fi Limited operates a retail chain that sells home consumer products, with a market capitalization of approximately A$7.04 billion.

Operations: JB Hi-Fi Limited generates revenue through three primary segments: The Good Guys (TGG) at A$2.66 billion, JB Hi-Fi Australia (JB Aust) at A$6.57 billion, and JB Hi-Fi New Zealand (JB NZ) at A$0.28 billion.

Dividend Yield: 4.2%

JB Hi-Fi's dividend yield of 4.24% is modest compared to Australia's top dividend payers. The company has a mixed track record with volatile dividends over the past decade, although recent years show an increase in payouts. Its dividends are reasonably covered by earnings and cash flows, with payout ratios at 65% and 46.7%, respectively. However, JB Hi-Fi faces challenges with declining earnings forecasted at an average of -1.4% annually over the next three years, potentially impacting future dividend reliability.