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Three ASX Dividend Stocks Offering Yields From 3.2% To 8.6%

The Australian stock market has shown a mix of performances recently, with the ASX200 closing up by 0.63%, driven by strong gains in the energy and materials sectors. However, sectors such as healthcare have not fared as well, indicating a varied economic landscape across different industries. In this context, dividend stocks can offer investors potential stability and regular income streams, qualities that are particularly appealing in times of market fluctuation and sector-specific volatility.

Top 10 Dividend Stocks In Australia

Name

Dividend Yield

Dividend Rating

Fiducian Group (ASX:FID)

4.03%

★★★★★☆

Nick Scali (ASX:NCK)

4.88%

★★★★★☆

Centuria Capital Group (ASX:CNI)

6.67%

★★★★★☆

Charter Hall Group (ASX:CHC)

3.49%

★★★★★☆

Premier Investments (ASX:PMV)

4.58%

★★★★★☆

Fortescue (ASX:FMG)

7.31%

★★★★★☆

Diversified United Investment (ASX:DUI)

3.17%

★★★★★☆

Ricegrowers (ASX:SGLLV)

7.93%

★★★★☆☆

New Hope (ASX:NHC)

8.69%

★★★★☆☆

Macquarie Group (ASX:MQG)

3.30%

★★★★☆☆

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

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Underneath we present a selection of stocks filtered out by our screen.

IGO

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

Overview: IGO Limited is an Australian exploration and mining company specializing in metals critical for clean energy, with a market capitalization of approximately A$6.08 billion.

Operations: IGO Limited generates revenue primarily through its Nova Operation and Forrestania Operation, which collectively contributed A$903.4 million to the company's earnings.

Dividend Yield: 6.8%

IGO Limited's recent financial performance shows a decline, with sales dropping from A$541.7 million to A$438.2 million and net income falling from A$612.3 million to A$288.3 million in the last half year. Despite this, the company maintains a dividend yield of 6.84%, which is high compared to the market average but is poorly supported by earnings, given a payout ratio of 185%. While cash flows cover dividends reasonably well with a cash payout ratio of 39.7%, IGO's dividend history has been volatile over the past decade, reflecting inconsistency in payments despite an overall increase in dividend amounts during this period.

ASX:IGO Dividend History as at May 2024
ASX:IGO Dividend History as at May 2024

Macquarie Group

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

Overview: Macquarie Group Limited is a global provider of diversified financial services, operating across Australia, the Americas, Europe, the Middle East, Africa, and Asia Pacific with a market capitalization of approximately A$70.86 billion.

Operations: Macquarie Group Limited generates its revenue from several key operations, including Macquarie Capital at A$2.61 billion, Macquarie Asset Management at A$3.75 billion, Banking and Financial Services at A$3.21 billion, and Commodities and Global Markets at A$6.32 billion.

Dividend Yield: 3.3%

Macquarie Group's dividend yield stands at 3.3%, which is modest compared to Australia's top dividend payers. Despite a decade of increasing dividends, the payments have been volatile, showing inconsistency. Currently, dividends are well-covered by earnings with a payout ratio of 69.8%, and forecasts suggest this will improve slightly to 63% in three years. However, concerns arise from Macquarie's low allowance for bad loans at 44% and a significant portion of liabilities funded through higher-risk external borrowing.

ASX:MQG Dividend History as at May 2024
ASX:MQG Dividend History as at May 2024

New Hope

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

Overview: New Hope Corporation Limited, with a market cap of A$4.18 billion, is engaged in the exploration, development, production, and processing of coal and oil and gas properties.

Operations: New Hope Corporation Limited generates A$1.88 billion from its Coal Mining NSW segment and A$48.15 million from its Coal Mining QLD segment, including Treasury and Investments.

Dividend Yield: 8.7%

New Hope Corporation Limited's recent financials show a significant drop in net income and revenue, with the latest figures at A$251.67 million and A$862.95 million respectively, down from the previous year. Despite this downturn, the company maintains a high dividend yield of 8.69%, placing it among the top 25% of Australian dividend payers. However, its dividends have been marked by volatility over the past decade and are currently not well-supported by cash flows, with a high cash payout ratio of 90.2%.

ASX:NHC Dividend History as at May 2024
ASX:NHC Dividend History as at May 2024

Key Takeaways

  • Navigate through the entire inventory of 30 Top ASX Dividend Stocks here.

  • Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.

  • Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Interested In Other Possibilities?

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:IGO ASX:MQG and ASX:NHC.

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