Yahoo Finance Exploring ASX Dividend Stocks In June 2024
As the ASX200 closed slightly down with most sectors in the red, it highlighted a cautious sentiment prevailing in the Australian market. However, gains in Consumer Discretionary and Healthcare sectors provide a nuanced view of current market dynamics. In such a fluctuating environment, dividend stocks might appeal to investors looking for potential stability and regular income streams amidst broader market volatility.
Top 10 Dividend Stocks In Australia
Name | Dividend Yield | Dividend Rating |
Lindsay Australia (ASX:LAU) | 7.19% | ★★★★★☆ |
Nick Scali (ASX:NCK) | 5.07% | ★★★★★☆ |
Fiducian Group (ASX:FID) | 3.99% | ★★★★★☆ |
Centuria Capital Group (ASX:CNI) | 6.71% | ★★★★★☆ |
Charter Hall Group (ASX:CHC) | 3.59% | ★★★★★☆ |
Eagers Automotive (ASX:APE) | 7.27% | ★★★★★☆ |
Premier Investments (ASX:PMV) | 4.65% | ★★★★★☆ |
Fortescue (ASX:FMG) | 8.68% | ★★★★★☆ |
Diversified United Investment (ASX:DUI) | 3.11% | ★★★★★☆ |
Ricegrowers (ASX:SGLLV) | 7.78% | ★★★★☆☆ |
Click here to see the full list of 27 stocks from our Top ASX Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Commonwealth Bank of Australia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Commonwealth Bank of Australia offers financial services across Australia, New Zealand, and other international markets, with a market capitalization of approximately A$209.54 billion.
Operations: Commonwealth Bank of Australia generates its revenue primarily through Retail Banking Services, including Bankwest, which contributes A$11.77 billion, followed by Business Banking at A$8.54 billion, Institutional Banking and Markets at A$2.58 billion, and operations in New Zealand accounting for A$2.97 billion.
Dividend Yield: 3.6%
Commonwealth Bank of Australia's dividend yield stands at 3.63%, below the top quartile of Australian dividend stocks at 6.58%. Despite a history of unstable and unreliable dividends over the past decade, current earnings adequately cover payouts with a payout ratio of 78.1%. Dividends are projected to remain covered by earnings in three years (77.6% payout ratio), and there has been growth in dividend payments over the last ten years, indicating some positive movement amidst overall volatility.
JB Hi-Fi
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: JB Hi-Fi Limited operates as a retailer of home consumer products, with a market capitalization of approximately A$6.92 billion.
Operations: JB Hi-Fi Limited generates its revenue primarily through three segments: The Good Guys (TGG) contributing A$2.66 billion, JB Hi-Fi Australia (JB Aust) with A$6.57 billion, and JB Hi-Fi New Zealand (JB NZ) at A$0.28 billion.
Dividend Yield: 4.3%
JB Hi-Fi's dividend yield at 4.31% trails behind the Australian market's top quartile. Despite a payout ratio of 65%, suggesting earnings coverage, dividends have shown volatility over the past decade with no consistent growth pattern. Recent sales data indicates slight declines in JB HI-FI Australia and The Good Guys segments, potentially impacting future profitability and dividend sustainability. The company's P/E ratio at 15.1x remains below the market average, offering some value consideration amidst concerns over its dividend reliability.
Premier Investments
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Premier Investments Limited is a specialty retail company managing fashion chains across Australia, New Zealand, Asia, and Europe, with a market capitalization of approximately A$4.67 billion.
Operations: Premier Investments Limited generates revenue primarily through its retail operations, which amounted to A$1.63 billion.
Dividend Yield: 4.6%
Premier Investments, trading below our fair value estimate by 40.6%, maintains a stable dividend history over the past decade with a current yield of 4.65%. Despite dividends being reliably covered by earnings and cash flows, with payout ratios at 71.5% and cash payout ratio at 55% respectively, its yield remains below the top quartile of Australian dividend stocks (6.58%). Recent strategic moves include plans to demerge its Smiggle and Peter Alexander brands, potentially unlocking further value as indicated by a recent surge in share price following these announcements.
Key Takeaways
Get an in-depth perspective on all 27 Top ASX Dividend Stocks by using our screener here.
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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:CBA ASX:JBH and ASX:PMV.
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