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The market is up 2.2% over the last week and has climbed 6.6% in the past year, with earnings forecast to grow by 13% annually. In this favorable environment, identifying dividend stocks that offer both stability and growth potential can be a prudent strategy for investors looking to capitalize on these positive trends.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 30 stocks from our Top ASX Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Ampol

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

Overview: Ampol Limited purchases, refines, distributes, and markets petroleum products in Australia, New Zealand, Singapore, and the United States with a market cap of A$7.63 billion.

Operations: Ampol Limited's revenue segments include Z Energy (A$5.51 billion), Convenience Retail (A$5.99 billion), and Fuels and Infrastructure (A$33.63 billion).

Dividend Yield: 8.6%

Ampol's dividend yield of 8.59% places it in the top 25% of Australian dividend payers. However, the sustainability is questionable as dividends are not well covered by earnings and have been volatile over the past decade. Recent strategic alliances with IFM Investors and GrainCorp to explore renewable fuels could enhance future cash flows, but high debt levels remain a concern. The stock trades at a significant discount to its estimated fair value, suggesting potential for capital appreciation alongside dividends.

• Unlock comprehensive insights into our analysis of Ampol stock in this dividend report.

• Our valuation report unveils the possibility Ampol's shares may be trading at a premium.

JB Hi-Fi

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

Overview: JB Hi-Fi Limited, along with its subsidiaries, retails home consumer products and has a market cap of A$8.30 billion.

Operations: JB Hi-Fi Limited generates revenue through three main segments: The Good Guys (A$2.68 billion), JB Hi-Fi Australia (A$6.61 billion), and JB Hi-Fi New Zealand (A$303.40 million).

Dividend Yield: 3.4%

JB Hi-Fi's dividend payments have shown growth over the past decade, but they have been volatile and unreliable. The company's fiscal year 2024 earnings call revealed a slight decline in sales to A$9.59 billion and net income of A$438.8 million, down from A$524.6 million the previous year. Despite this, JB Hi-Fi maintains a reasonable payout ratio of 65%, with dividends well covered by cash flows (42.1%). However, its dividend yield of 3.44% is lower than the top quartile in Australia.

• Click to explore a detailed breakdown of our findings in JB Hi-Fi's dividend report.

• The valuation report we've compiled suggests that JB Hi-Fi's current price could be inflated.

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$24.32 billion.

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

Dividend Yield: 3.7%

QBE Insurance Group's dividend payments have increased over the past decade but remain volatile and unreliable. The company's recent half-year earnings report showed significant growth, with net income rising to US$802 million from US$400 million a year ago. QBE announced an interim dividend of 24 Australian cents per share, up from 14 cents last year, with a total payout of A$360 million. Dividends are well covered by earnings (42.9%) and cash flows (17.2%).

• Dive into the specifics of QBE Insurance Group here with our thorough dividend report.

• According our valuation report, there's an indication that QBE Insurance Group's share price might be on the cheaper side.

Taking Advantage

• Delve into our full catalog of 30 Top ASX Dividend Stocks here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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:ALD ASX:JBH and ASX:QBE.

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