The Australian market has climbed 1.1% in the last 7 days and an impressive 18% over the past year, with earnings forecast to grow by 12% annually. In this thriving environment, identifying strong dividend stocks can be a strategic way to capitalize on both income and growth potential; here we explore three top picks on the ASX, including Australian United Investment.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 41 stocks from our Top ASX Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Australian United Investment

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

Overview: Australian United Investment Company Limited is a publicly owned investment manager with a market capitalization of A$1.38 billion.

Operations: Australian United Investment Company Limited generates revenue primarily from its investment segment, amounting to A$57.76 million.

Dividend Yield: 3.3%

Australian United Investment's recent announcements include a regular dividend of A$0.20 and a special dividend of A$0.08, both with an ex-date of August 26, 2024. The company reported net income of A$49.12 million for the year ended June 30, 2024, down from A$56.36 million the previous year. While dividends have been stable and growing over the past decade, their sustainability is questionable due to high payout ratios and limited coverage by earnings and cash flows.

• Delve into the full analysis dividend report here for a deeper understanding of Australian United Investment.
• The valuation report we've compiled suggests that Australian United Investment's current price could be inflated.

Fiducian Group

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

Overview: Fiducian Group Ltd, with a market cap of A$265.36 million, operates through its subsidiaries to provide financial services in Australia.

Operations: Fiducian Group Ltd generates revenue from four primary segments: Funds Management (A$22.08 million), Corporate Services (A$15.06 million), Financial Planning (A$27.69 million), and Platform Administration (A$15.97 million).

Dividend Yield: 4.7%

Fiducian Group offers a reliable dividend yield of 4.66%, with stable and growing payments over the past decade. Recent earnings growth of 22.1% supports its dividend sustainability, as payouts are covered by both earnings and cash flows, with payout ratios at 82.3% and 63.8%, respectively. The recent dividend increase to A$0.211 per share highlights its commitment to shareholders, although the yield remains below top-tier Australian payers at 5.94%.

• Click here and access our complete dividend analysis report to understand the dynamics of Fiducian Group.
• Our valuation report unveils the possibility Fiducian Group's shares may be trading at a discount.

Santos

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

Overview: Santos Limited is involved in the exploration, development, production, transportation, and marketing of hydrocarbons in Australia and Papua New Guinea with a market capitalization of A$23.23 billion.

Operations: Santos Limited's revenue segments include Cooper Basin ($612 million), Queensland & NSW ($1.31 billion), Western Australia ($881 million), Papua New Guinea (PNG) ($2.71 billion), and Northern Australia & Timor-Leste ($84 million).

Dividend Yield: 6.2%

Santos offers a dividend yield of 6.16%, ranking in the top 25% of Australian payers, but its dividends have been volatile and not well covered by cash flows, with a high cash payout ratio of 164.4%. Recent earnings reported at US$636 million for H1 2024 reflect a decline from the previous year. The appointment of Sherry Duhe as CFO could influence future financial strategies, potentially impacting dividend stability and growth.

• Navigate through the intricacies of Santos with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Santos' share price might be too pessimistic.

Make It Happen

• Discover the full array of 41 Top ASX Dividend Stocks right here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Ready To Venture Into Other Investment Styles?

• 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:AUI ASX:FID and ASX:STO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com