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The Australian market is currently grappling with the ripple effects of a hawkish stance from the U.S. Federal Reserve, leading to anticipated declines in ASX 200 futures and a weakened Aussie dollar. Amidst this uncertainty, dividend stocks can offer investors potential stability and income, making them an appealing consideration for those navigating volatile market conditions.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Nick Scali (ASX:NCK) | 4.23% | ★★★★★☆ |
| Collins Foods (ASX:CKF) | 3.73% | ★★★★★☆ |
| Super Retail Group (ASX:SUL) | 7.94% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.36% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.00% | ★★★★★☆ |
| National Storage REIT (ASX:NSR) | 4.60% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 4.21% | ★★★★★☆ |
| New Hope (ASX:NHC) | 7.89% | ★★★★☆☆ |
| Grange Resources (ASX:GRR) | 8.89% | ★★★★☆☆ |
| Australian United Investment (ASX:AUI) | 3.52% | ★★★★☆☆ |
Click here to see the full list of 31 stocks from our Top ASX Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Ampol
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ampol Limited is engaged in the purchase, refining, distribution, and marketing of petroleum products across Australia, New Zealand, Singapore, and the United States with a market capitalization of A$6.37 billion.
Operations: Ampol Limited's revenue is primarily derived from its Fuels and Infrastructure segment at A$34.46 billion, followed by Convenience Retail at A$5.97 billion, and New Zealand operations at A$5.49 billion.
Dividend Yield: 9%
Ampol's dividend yield is among the top 25% in Australia, but its sustainability is questionable due to a high cash payout ratio of 115.2%, indicating dividends are not well covered by free cash flows. Despite past volatility and unreliability in dividend payments, earnings have shown significant growth recently. The stock trades at a good value compared to peers and below estimated fair value, but investors should be cautious given the company's high debt levels.
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Navigate through the intricacies of Ampol with our comprehensive dividend report here.
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Upon reviewing our latest valuation report, Ampol's share price might be too pessimistic.
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$1.31 billion.
Operations: Australian United Investment Company Limited generates its revenue primarily from investments, amounting to A$57.76 million.
Dividend Yield: 3.5%
Australian United Investment's dividend yield of 3.52% is below the top 25% in Australia. While dividends have been stable and reliable over the past decade, with consistent growth, their sustainability is concerning due to a high payout ratio of 95%, indicating they are not well covered by earnings. However, with a cash payout ratio of 89.7%, dividends are supported by cash flows, suggesting some level of financial prudence despite lower yield competitiveness.