The Australian stock market has shown resilience, with the ASX 200 rising by 0.9% to 8,245 points as investors temporarily set aside last week's downturn and embraced a day of gains across all sectors, particularly in Energy and IT. In this dynamic environment, dividend stocks can offer a stable income stream for investors seeking to navigate potential volatility; Accent Group and two other top picks stand out as noteworthy options for those looking to capitalize on consistent returns amidst fluctuating market conditions.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 34 stocks from our Top ASX Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Accent Group

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

Overview: Accent Group Limited operates in the retail, distribution, and franchise sectors for lifestyle footwear, apparel, and accessories across Australia and New Zealand with a market capitalization of A$1.14 billion.

Operations: Accent Group Limited generates revenue from its retail segment with A$1.30 billion and wholesale operations contributing A$475.92 million.

Dividend Yield: 6.4%

Accent Group's dividend yield of 6.44% places it among the top 25% of Australian dividend payers, with dividends covered by earnings (payout ratio: 87.5%) and cash flows (cash payout ratio: 38.2%). However, its dividend history has been volatile over the past decade, and recent interim dividends decreased to A$0.055 per share. The stock trades at a significant discount to estimated fair value, suggesting potential upside despite historical instability in payouts.

• Click here to discover the nuances of Accent Group with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, Accent Group's share price might be too pessimistic.

NRW Holdings

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

Overview: NRW Holdings Limited, with a market cap of A$1.36 billion, offers diversified contract services to the resources and infrastructure sectors in Australia through its subsidiaries.

Operations: NRW Holdings Limited generates revenue from its segments as follows: MET at A$853.22 million, Civil at A$776.06 million, and Mining at A$1.56 billion.

Dividend Yield: 5.2%

NRW Holdings' dividend yield of 5.2% falls below the top 25% of Australian dividend payers, but its dividends are covered by earnings (payout ratio: 63.4%) and cash flows (cash payout ratio: 55.3%). Despite a volatile dividend history, recent increases include an A$0.07 per share interim dividend for H1 2025. The stock trades at a discount to fair value, with analysts expecting price appreciation, though past payout instability remains a concern for investors seeking reliability.

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

Premier Investments

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

Overview: Premier Investments Limited operates specialty retail fashion chains across Australia, New Zealand, Asia, and Europe with a market cap of A$3.66 billion.

Operations: Premier Investments Limited generates revenue through its Retail segment, amounting to A$1.61 billion, and its Investment segment, which contributes A$208.53 million.

Dividend Yield: 6.1%

Premier Investments' dividend yield of 6.11% is just below the top 25% in Australia, yet its dividends have been stable and growing over the past decade. The company's payout ratios indicate sustainability, with earnings coverage at 82.2% and cash flow coverage at 59.1%. Trading below the market P/E ratio suggests good value, despite forecasted earnings declines. Recent guidance projects sales between A$855 million and A$865 million for H1 2025, highlighting ongoing operational performance.

• Get an in-depth perspective on Premier Investments' performance by reading our dividend report here.
• The valuation report we've compiled suggests that Premier Investments' current price could be quite moderate.

Taking Advantage

• Unlock more gems! Our Top ASX Dividend Stocks screener has unearthed 31 more companies for you to explore.Click here to unveil our expertly curated list of 34 Top ASX Dividend Stocks.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Ready For A Different Approach?

• 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:AX1 ASX:NWH and ASX:PMV.

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