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In the last week, the Australian market has stayed flat, although it is up 11% over the past year with earnings expected to grow by 12% per annum over the next few years. In this environment, selecting dividend stocks that offer stable yields and potential for growth can be a prudent strategy for investors.

Top 10 Dividend Stocks In Australia

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

Below we spotlight a couple of our favorites from our exclusive screener.

MFF Capital Investments

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

Overview: MFF Capital Investments Limited is an investment firm manager with a market cap of A$2.20 billion.

Operations: MFF Capital Investments Limited generates revenue primarily from equity investments, amounting to A$659.96 million.

Dividend Yield: 3.7%

MFF Capital Investments Limited recently reported strong earnings growth with revenue of A$666.59 million and net income of A$447.36 million for the year ended June 30, 2024. The company announced a final dividend of 7 cents per share, payable on November 1, 2024. MFF's dividends are well-covered by both earnings (payout ratio: 16.8%) and cash flows (cash payout ratio: 24.1%), although its dividend yield of 3.68% is lower than the top quartile in Australia (6.16%).

• Get an in-depth perspective on MFF Capital Investments' performance by reading our dividend report here.

• In light of our recent valuation report, it seems possible that MFF Capital Investments is trading behind its estimated value.

QBE Insurance Group

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

Overview: QBE Insurance Group Limited underwrites general insurance and reinsurance risks across the Australia Pacific, North America, and international markets, with a market cap of A$24.86 billion.

Operations: QBE Insurance Group Limited generates revenue from international operations ($9.56 billion), North America ($7.71 billion), and the Australia Pacific region ($5.91 billion).

Dividend Yield: 3.6%

QBE Insurance Group's dividend payments have been volatile over the past decade, though they have increased overall. Despite this volatility, QBE's dividends are well covered by earnings (payout ratio: 42.9%) and cash flows (cash payout ratio: 17.2%). The company recently announced an interim dividend of A$0.24 per share for H1 2024, up from A$0.14 last year, reflecting strong earnings growth with net income reaching US$802 million for the half-year ended June 30, 2024.

• Delve into the full analysis dividend report here for a deeper understanding of QBE Insurance Group.

• The analysis detailed in our QBE Insurance Group valuation report hints at an deflated share price compared to its estimated value.

Ridley

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

Overview: Ridley Corporation Limited, with a market cap of A$773.79 million, provides animal nutrition solutions in Australia through its subsidiaries.

Operations: Ridley Corporation Limited generates revenue through two primary segments: Bulk Stockfeeds (A$886.59 million) and Packaged/Ingredients (A$376.31 million).

Dividend Yield: 3.8%

Ridley's dividend payments have been inconsistent over the past decade, though they have shown growth. The current payout ratio of 71.7% indicates dividends are well covered by earnings and cash flows (40.8%). Despite a lower yield (3.8%) compared to top Australian dividend payers, Ridley is trading at 68.5% below its estimated fair value and has announced a share buyback program worth A$20 million to enhance shareholder value and support future growth opportunities.

• Click here to discover the nuances of Ridley with our detailed analytical dividend report.

• Upon reviewing our latest valuation report, Ridley's share price might be too pessimistic.

Next Steps

• Investigate our full lineup of 32 Top ASX Dividend Stocks right here.

• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.

• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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.

Companies discussed in this article include ASX:MFF ASX:QBE and ASX:RIC.

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