Over the last 7 days, the Australian market has remained flat, but it has risen 6.6% over the past 12 months with earnings forecast to grow by 13% annually. In this environment, identifying strong dividend stocks can be a prudent strategy for investors seeking reliable income and potential growth.

Top 10 Dividend Stocks In Australia

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

Let's uncover some gems from our specialized screener.

Eagers Automotive

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

Overview: Eagers Automotive Limited, with a market cap of A$2.74 billion, owns and operates motor vehicle dealerships in Australia and New Zealand.

Operations: Eagers Automotive Limited generates revenue primarily from Car Retailing (A$9.85 billion) and Property (A$39.68 million).

Dividend Yield: 7.0%

Eagers Automotive's dividend yield of 6.97% ranks in the top 25% of Australian dividend payers, supported by a reasonable cash payout ratio of 55.9%. Despite this, the company's high debt level and historically unstable dividends pose risks. Recent announcements include a share repurchase program for up to A$25.82 million shares and ongoing M&A activities aimed at exceeding revenue growth guidance for 2024, reflecting strategic efforts to bolster financial stability and shareholder value.

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

• Our valuation report here indicates Eagers Automotive may be undervalued.

Commonwealth Bank of Australia

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

Overview: Commonwealth Bank of Australia, with a market cap of A$229.90 billion, provides financial services in Australia, New Zealand, and internationally.

Operations: Commonwealth Bank of Australia's revenue segments include Retail Banking Services (A$11.77 billion), Business Banking (A$8.54 billion), New Zealand operations (A$2.97 billion), and Institutional Banking and Markets (A$2.58 billion).

Dividend Yield: 3.3%

Commonwealth Bank of Australia’s dividend payments are covered by earnings with a current payout ratio of 78.1%, and forecasted to remain similar in three years. However, its 3.31% dividend yield is low compared to the top 25% of Australian dividend payers, and the dividends have been volatile over the past decade despite overall growth. Recent fixed-income offerings totaling over €1 billion indicate ongoing efforts to manage capital and liquidity effectively amidst these challenges.

• Navigate through the intricacies of Commonwealth Bank of Australia with our comprehensive dividend report here.

• Our expertly prepared valuation report Commonwealth Bank of Australia implies its share price may be too high.

Shaver Shop Group

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

Overview: Shaver Shop Group Limited (ASX:SSG) is a retailer of personal care and grooming products operating in Australia and New Zealand, with a market cap of A$159.84 million.

Operations: Shaver Shop Group Limited generates revenue primarily from retail store sales of specialist personal grooming products, amounting to A$219.66 million.

Dividend Yield: 8.4%

Shaver Shop Group's dividends are covered by both earnings (83.6% payout ratio) and free cash flows (52.9% cash payout ratio), but the payments have been unreliable over the past seven years with some volatility. Despite this, its dividend yield of 8.36% is among the top 25% in Australia. Recent news includes the retirement of long-serving director Brian Singer, which may impact strategic direction and governance stability moving forward.

• Delve into the full analysis dividend report here for a deeper understanding of Shaver Shop Group.

• Our expertly prepared valuation report Shaver Shop Group implies its share price may be lower than expected.

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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:APE ASX:CBA and ASX:SSG.

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