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As the ASX200 edges up by 0.21% to 8,345 points, with sectors like Discretionary and Utilities leading the charge, investors are keenly observing dividend stocks as a potential source of steady income amidst these market dynamics. In this environment, identifying strong dividend stocks involves looking for companies with a solid track record of payouts and stability in performance across fluctuating market conditions.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Nick Scali (ASX:NCK) | 4.40% | ★★★★★☆ |
| Super Retail Group (ASX:SUL) | 7.80% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.36% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.01% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 5.00% | ★★★★★☆ |
| National Storage REIT (ASX:NSR) | 4.72% | ★★★★★☆ |
| New Hope (ASX:NHC) | 7.91% | ★★★★☆☆ |
| Santos (ASX:STO) | 6.82% | ★★★★☆☆ |
| Grange Resources (ASX:GRR) | 9.76% | ★★★★☆☆ |
| Australian United Investment (ASX:AUI) | 3.52% | ★★★★☆☆ |
Click here to see the full list of 30 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 the purchase, refining, distribution, and marketing of petroleum products across Australia, New Zealand, Singapore, and the United States with a market cap of A$7.11 billion.
Operations: Ampol Limited generates its revenue through segments including New Zealand (A$5.49 billion), Convenience Retail (A$5.97 billion), and Fuels and Infrastructure (A$34.46 billion).
Dividend Yield: 8.1%
Ampol's dividend yield of 8.08% ranks in the top 25% of Australian dividend payers, yet its sustainability is questionable due to a high cash payout ratio of 115.2%, indicating dividends aren't well covered by free cash flows. Despite recent earnings growth and trading at a significant discount to fair value, Ampol's dividends have been volatile over the past decade. The appointment of Guy Templeton as an Independent Non-Executive Director may influence future strategic decisions impacting dividends.
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Take a closer look at Ampol's potential here in our dividend report.
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Our valuation report here indicates Ampol may be undervalued.
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$1.30 billion.
Operations: Australian United Investment Company Limited generates its revenue primarily from its investment segment, totaling A$57.76 million.
Dividend Yield: 3.5%
Australian United Investment offers a stable dividend history with consistent growth over the past decade, though its 3.52% yield is below the top tier in Australia. The company's dividends are reliable but not well covered by earnings, indicated by a high payout ratio of 95%. However, they are supported by cash flows with an 89.7% cash payout ratio. Investors should weigh the stability against coverage concerns when considering AUI for dividends.