The Australian market has remained flat over the last week but has seen a 16% rise over the past year, with earnings anticipated to grow by 12% annually in the coming years. In this context, selecting dividend stocks like Lindsay Australia can be a strategic move for investors seeking steady income and potential growth in their portfolios.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 38 stocks from our Top ASX Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Lindsay Australia

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

Overview: Lindsay Australia Limited operates in the transport, logistics, and rural supply sectors serving the food processing, food services, fresh produce, and horticulture industries in Australia with a market cap of A$288.10 million.

Operations: Lindsay Australia Limited generates revenue through its segments, with A$577.36 million from Transport, A$155.44 million from Rural, and A$87.44 million from Hunters.

Dividend Yield: 5.3%

Lindsay Australia's dividend payments are well-covered by cash flows, with a low cash payout ratio of 18.7%, and earnings coverage at 56%. Despite this, dividends have been unreliable and volatile over the past decade. The recent decrease in dividend to A$0.028 reflects challenges as net income declined to A$27.27 million from A$34.52 million last year, impacting profit margins negatively from 5.1% to 3.4%.

• Take a closer look at Lindsay Australia's potential here in our dividend report.
• Our expertly prepared valuation report Lindsay Australia implies its share price may be lower than expected.

SHAPE Australia

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

Overview: SHAPE Australia Corporation Limited operates in the construction, fitout, and refurbishment of commercial properties across Australia and has a market cap of A$233.81 million.

Operations: SHAPE Australia's revenue is primarily derived from its Heavy Construction segment, amounting to A$839.00 million.

Dividend Yield: 6.4%

SHAPE Australia's dividend yield of 6.38% ranks in the top quartile among Australian stocks, though its three-year dividend history is marked by volatility. Recent earnings growth has been strong, with net income rising to A$16.01 million from A$10.5 million last year, supporting a payout ratio of 88.3%. While dividends are well-covered by cash flows at a 53.2% ratio, consistency remains an issue despite recent increases to A$0.09 per share for the latest period.

• Click to explore a detailed breakdown of our findings in SHAPE Australia's dividend report.
• The valuation report we've compiled suggests that SHAPE Australia's current price could be quite moderate.

Sugar Terminals

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

Overview: Sugar Terminals Limited offers storage and handling solutions for bulk sugar and other commodities in Australia, with a market cap of A$378 million.

Operations: Sugar Terminals Limited generates revenue of A$115.38 million from the sugar industry segment.

Dividend Yield: 7.8%

Sugar Terminals Limited's dividend yield of 7.81% places it among the top 25% of Australian dividend payers. Recent earnings growth supports its payout, with net income rising to A$32.47 million from A$29.15 million last year, and a payout ratio of 89.8%. The company declared a fully franked final dividend of A$14.76 million (4.1 cents per share). While dividends are covered by earnings and cash flows, their track record remains under a decade long.

• Delve into the full analysis dividend report here for a deeper understanding of Sugar Terminals.
• In light of our recent valuation report, it seems possible that Sugar Terminals is trading behind its estimated value.

Summing It All Up

• Discover the full array of 38 Top ASX Dividend Stocks right here.
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Curious About Other Options?

• 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:LAU ASX:SHA and NSX:SUG.

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