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In the pursuit of reliable dividend stocks on the ASX, it is crucial for investors to consider the stability of dividend payments. While some companies offer attractive and increasing dividends, others have a history of significant cuts, which could signal underlying financial challenges. Understanding these dynamics is key to selecting stocks that not only provide immediate income but also offer long-term investment security.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Auswide Bank (ASX:ABA) | 9.75% | ★★★★★☆ |
| Nick Scali (ASX:NCK) | 4.75% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.04% | ★★★★★☆ |
| Joyce (ASX:JYC) | 6.83% | ★★★★★☆ |
| Korvest (ASX:KOV) | 6.63% | ★★★★★☆ |
| Centuria Capital Group (ASX:CNI) | 6.67% | ★★★★★☆ |
| Charter Hall Group (ASX:CHC) | 3.56% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 4.58% | ★★★★★☆ |
| Fortescue (ASX:FMG) | 8.05% | ★★★★★☆ |
| Diversified United Investment (ASX:DUI) | 3.20% | ★★★★★☆ |
Click here to see the full list of 45 stocks from our Top Dividend Stocks screener.
Underneath we present one of the stocks filtered out by our screen and one to sidestep.
One To Reconsider
Viva Energy Group
Simply Wall St Dividend Rating: ★☆☆☆☆☆
Overview: The company operates as an energy provider in Australia, Singapore, and Papua New Guinea with a market capitalization of approximately A$5.72 billion.
Operations: The company generates revenue through three primary segments: Convenience & Mobility (A$10.10 billion), Commercial & Industrial (A$16.64 billion), and Energy & Infrastructure (A$7.32 billion).
Dividend Yield: 3.9%
Viva Energy Group's recent financials reveal a significant drop in net income from A$514.3 million to A$3.8 million year-over-year, with earnings per share plummeting from A$0.333 to A$0.002, reflecting underlying business challenges. Despite this, the company declared a dividend of A$0.071, which appears unsustainable given the payout ratio exceeding 6000% and cash payout ratio at 121%. This raises concerns about the reliability and sustainability of future dividends, especially with profit margins also compressing drastically from 1.9% to just 0.01%.
Top Pick
Lindsay Australia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Lindsay Australia Limited operates in Australia, offering integrated transport, logistics, and rural supply services primarily to sectors such as food processing, food services, fresh produce, and horticulture with a market capitalization of approximately A$328.73 million.
Operations: The company generates revenue through its rural supply services amounting to A$158.73 million and transport services totaling A$571.38 million.