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The Australian market has recently experienced a setback, with the ASX200 down 0.5% to 8,308 points after breaking a five-day rally, as all sectors faced declines amidst cautious consumer spending despite some economic relief measures. In such fluctuating conditions, dividend stocks can offer investors a measure of stability and income potential by providing regular payouts even when market volatility is high.

Top 10 Dividend Stocks In Australia

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

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

Lindsay Australia

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

Overview: Lindsay Australia Limited offers integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, and horticulture sectors in Australia with a market cap of A$277.06 million.

Operations: Lindsay Australia Limited's revenue is primarily derived from its Transport segment at A$577.36 million, followed by Rural at A$155.44 million and Hunters at A$87.44 million, with a smaller contribution from Corporate at A$4.99 million.

Dividend Yield: 5.6%

Lindsay Australia's dividend sustainability is supported by its payout ratio of 56% and a low cash payout ratio of 18.8%, indicating dividends are well covered by earnings and cash flows. However, the company's dividend history has been unstable over the past decade, with volatility in payments. Despite offering a yield of 5.57%, which is below top-tier Australian payers, it trades at good value compared to peers and industry averages.

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

• Our valuation report here indicates Lindsay Australia may be undervalued.

Perenti

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

Overview: Perenti Limited is a global mining services company with a market capitalization of A$1.29 billion.

Operations: Perenti Limited generates revenue from Drilling Services (A$598.10 million), Contract Mining Services (A$2.54 billion), and Mining Services and Idoba (A$239.06 million).

Dividend Yield: 5.7%

Perenti's dividend payments, while covered by earnings and cash flows with payout ratios of 55.3% and 48.2% respectively, have been volatile over the past decade, indicating an unstable track record. The dividend yield of 5.71% is below the top tier in Australia but represents good value as the stock trades significantly below its estimated fair value. Recent presentations at IMARC 2024 highlight a focus on mining electrification and technology advancements, potentially impacting future growth prospects.