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.
Name | Dividend Yield | Dividend Rating |
Perenti (ASX:PRN) | 7.55% | ★★★★★☆ |
Fortescue (ASX:FMG) | 9.44% | ★★★★★☆ |
Super Retail Group (ASX:SUL) | 6.54% | ★★★★★☆ |
Nick Scali (ASX:NCK) | 4.08% | ★★★★★☆ |
Collins Foods (ASX:CKF) | 3.26% | ★★★★★☆ |
Fiducian Group (ASX:FID) | 4.66% | ★★★★★☆ |
MFF Capital Investments (ASX:MFF) | 3.63% | ★★★★★☆ |
National Storage REIT (ASX:NSR) | 4.35% | ★★★★★☆ |
Premier Investments (ASX:PMV) | 4.57% | ★★★★★☆ |
Sugar Terminals (NSX:SUG) | 7.81% | ★★★★☆☆ |
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.
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.
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%.
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.
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.
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