In This Article:
As the Australian market braces for the Reserve Bank's first interest rate decision of the year, investors are closely watching how this might impact dividend stocks on the ASX. In times of economic uncertainty, stocks that offer reliable dividends can provide a source of steady income and potential stability in an investor's portfolio.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Fortescue (ASX:FMG) | 9.76% | ★★★★★☆ |
| Super Retail Group (ASX:SUL) | 7.29% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.30% | ★★★★★☆ |
| Nick Scali (ASX:NCK) | 3.42% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.33% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 5.77% | ★★★★★☆ |
| National Storage REIT (ASX:NSR) | 4.87% | ★★★★★☆ |
| New Hope (ASX:NHC) | 8.82% | ★★★★☆☆ |
| Santos (ASX:STO) | 6.89% | ★★★★☆☆ |
| Australian United Investment (ASX:AUI) | 3.45% | ★★★★☆☆ |
Click here to see the full list of 31 stocks from our Top ASX Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Ampol
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ampol Limited is involved in purchasing, refining, distributing, and marketing petroleum products across Australia, New Zealand, Singapore, and the United States with a market cap of A$6.66 billion.
Operations: Ampol Limited's revenue segments include New Zealand (A$5.49 billion), Convenience Retail (A$5.97 billion), and Fuels and Infrastructure (A$34.46 billion).
Dividend Yield: 8.6%
Ampol's dividend yield of 8.59% ranks in the top 25% of Australian dividend payers, yet its reliability is questionable due to historical volatility and a high cash payout ratio of 115.2%. While trading at a significant discount to estimated fair value, Ampol's dividends are not well covered by free cash flows. Recent board appointments, including industry veterans Helen Nash and Stephen Pearce, may influence strategic decisions impacting future dividend stability and growth prospects.
Australian United Investment
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Australian United Investment Company Limited is a publicly owned investment manager with a market cap of A$1.33 billion.
Operations: Australian United Investment Company Limited generates revenue primarily from its investment segment, totaling A$57.76 million.
Dividend Yield: 3.4%
Australian United Investment's dividends have been stable and growing over the past decade, demonstrating reliability. However, with a payout ratio of 95%, these dividends are not well covered by earnings. Despite this, the cash payout ratio of 89.7% indicates coverage by cash flows. The dividend yield stands at 3.45%, which is lower than the top quartile in Australia, suggesting limited appeal for those seeking higher yields in dividend stocks.