The Australian market has shown positive momentum, rising 1.7% in the past week and 12% over the last year, with earnings projected to grow by 12% annually in the coming years. In this favorable environment, identifying dividend stocks with yields ranging from 3% to 7.3% can be a strategic move for investors seeking both income and potential capital appreciation.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 35 stocks from our Top ASX Dividend Stocks screener.

We'll examine a selection from our screener results.

Australian United Investment

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

Overview: Australian United Investment Company Limited, with a market cap of A$1.32 billion, operates as a publicly owned investment manager.

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

Dividend Yield: 3.5%

Australian United Investment Company Limited recently announced a regular dividend of A$0.20 and a special dividend of A$0.08, both payable on September 17, 2024. Despite stable and reliable dividends over the past decade, concerns arise as its high payout ratio (95%) indicates dividends are not well covered by earnings. However, with a cash payout ratio of 89.6%, the dividends are supported by cash flows. The current yield (3.48%) is lower than top-tier Australian dividend payers.

• Click to explore a detailed breakdown of our findings in Australian United Investment's dividend report.
• According our valuation report, there's an indication that Australian United Investment's share price might be on the expensive side.

Steadfast Group

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

Overview: Steadfast Group Limited operates as a general insurance brokerage service provider across Australasia, Asia, and Europe with a market cap of A$6.23 billion.

Operations: Steadfast Group Limited's revenue segments include Premium Funding at A$113 million and Insurance Intermediary at A$1.55 billion.

Dividend Yield: 3%

Steadfast Group's dividend payments are covered by earnings (80.7% payout ratio) and cash flows (65.6% cash payout ratio). However, the dividends have been volatile over the past decade. Recent earnings results show net income of A$228 million for FY2024, up from A$189.2 million last year, with a final franked dividend of 10.35 cents per share announced for September 24, 2024. Despite reasonable coverage, the current yield (3.03%) is below top-tier Australian dividend payers.

• Click here and access our complete dividend analysis report to understand the dynamics of Steadfast Group.
• Upon reviewing our latest valuation report, Steadfast Group's share price might be too optimistic.

Sugar Terminals

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

Overview: Sugar Terminals Limited (NSX:SUG) offers storage and handling solutions for bulk sugar and other commodities in Australia, with a market cap of A$390.60 million.

Operations: Sugar Terminals Limited generates revenue through its storage and handling services for bulk sugar and other commodities in Australia.

Dividend Yield: 7.4%

Sugar Terminals' dividend yield (7.37%) ranks in the top 25% of Australian dividend payers. The company's dividends are covered by earnings (payout ratio: 1.1%) and cash flows (cash payout ratio: 79.8%). Although dividends have been stable and growing, they have only been paid for nine years, indicating a relatively short track record. Recent financials show net income of A$32.47 million for FY2024, with a final fully franked dividend of A$14.76 million set for October 3, 2024.

• Click here to discover the nuances of Sugar Terminals with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Sugar Terminals is trading behind its estimated value.

Where To Now?

• Investigate our full lineup of 35 Top ASX Dividend Stocks right 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

• 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:SDF and NSX:SUG.

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