The Australian market has shown a positive trend, rising 1.1% over the last week and 18% over the past year, with earnings expected to grow by 12% annually. In this favorable environment, identifying strong dividend stocks like Commonwealth Bank of Australia can be key for investors seeking reliable income and potential capital appreciation.

Top 10 Dividend Stocks In Australia

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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 internationally, with a market cap of A$225.10 billion.

Operations: Commonwealth Bank of Australia's revenue segments include Retail Banking Services (Incl. Bankwest) at A$12.47 billion, Business Banking at A$8.14 billion, New Zealand operations at A$2.86 billion, and Institutional Banking and Markets at A$2.51 billion.

Dividend Yield: 3.5%

Commonwealth Bank of Australia has a mixed dividend profile, with payments covered by earnings at an 82.1% payout ratio, ensuring sustainability for now. However, its dividend yield of 3.45% is below the top quartile in Australia and has been volatile over the past decade. Recent executive changes and significant fixed-income offerings indicate strategic shifts but do not directly impact dividend reliability or growth prospects.

• Dive into the specifics of Commonwealth Bank of Australia here with our thorough dividend report.
• Upon reviewing our latest valuation report, Commonwealth Bank of Australia's share price might be too optimistic.

Collins Foods

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

Overview: Collins Foods Limited operates, manages, and administers restaurants in Australia and Europe with a market cap of A$1.03 billion.

Operations: Collins Foods Limited generates revenue from its restaurant operations, with A$54.38 million from Taco Bell Restaurants, A$313.47 million from KFC Restaurants in Europe, and A$1.12 billion from KFC Restaurants in Australia.

Dividend Yield: 3.2%

Collins Foods offers a stable dividend profile with payments well-covered by earnings (59.1% payout ratio) and cash flows (35.2% cash payout ratio). The dividend yield of 3.19%, while reliable and growing over the past decade, is below top-tier Australian payers. Trading at a slight discount to estimated fair value, it presents good relative value in its sector. Recent executive changes align with long-term strategic needs but do not directly affect dividends.

• Click here to discover the nuances of Collins Foods with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Collins Foods' current price could be quite moderate.

Super Retail Group

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

Overview: Super Retail Group Limited operates in Australia and New Zealand, retailing auto, sports, and outdoor leisure products with a market capitalization of A$4.12 billion.

Operations: Super Retail Group's revenue is derived from its segments: Rebel at A$1.29 billion, Macpac at A$214 million, Super Cheap Auto (SCA) at A$1.50 billion, and Boating, Camping and Fishing (BCF) at A$879.10 million.

Dividend Yield: 6.5%

Super Retail Group's dividend yield of 6.53% places it in the top 25% of Australian dividend payers, with dividends covered by earnings (64.9% payout ratio) and cash flows (53.7% cash payout ratio). However, its dividend history is volatile and unreliable over the past decade. Recent financials show a decline in net income to A$240.1 million despite revenue growth to A$3.89 billion, potentially impacting future payouts.

• Click to explore a detailed breakdown of our findings in Super Retail Group's dividend report.
• The analysis detailed in our Super Retail Group valuation report hints at an deflated share price compared to its estimated value.

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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:CKF and ASX:SUL.

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