Exploring Three ASX Dividend Stocks For Your Investment Portfolio

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The Australian market has shown robust growth, up 8.7% over the past year, with earnings expected to grow by 14% annually. In this promising environment, dividend stocks can be particularly appealing for investors looking for potential income combined with growth opportunities.

Top 10 Dividend Stocks In Australia

Name

Dividend Yield

Dividend Rating

Lindsay Australia (ASX:LAU)

6.59%

★★★★★☆

Nick Scali (ASX:NCK)

5.04%

★★★★★☆

Fiducian Group (ASX:FID)

3.91%

★★★★★☆

Charter Hall Group (ASX:CHC)

3.54%

★★★★★☆

Eagers Automotive (ASX:APE)

7.09%

★★★★★☆

Premier Investments (ASX:PMV)

4.61%

★★★★★☆

Fortescue (ASX:FMG)

7.54%

★★★★★☆

Diversified United Investment (ASX:DUI)

3.14%

★★★★★☆

Ricegrowers (ASX:SGLLV)

7.61%

★★★★☆☆

Macquarie Group (ASX:MQG)

3.33%

★★★★☆☆

Click here to see the full list of 28 stocks from our Top ASX Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Ampol

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

Overview: Ampol Limited, with a market capitalization of A$8.47 billion, operates in the purchase, refining, distribution, and marketing of petroleum products across Australia, New Zealand, Singapore, and the United States.

Operations: Ampol Limited generates revenue through three primary segments: Z Energy (A$5.51 billion), Convenience Retail (A$5.99 billion), and Fuels and Infrastructure (A$33.63 billion).

Dividend Yield: 7.8%

Ampol's dividend yield stands at 7.76%, placing it in the top 25% of Australian dividend payers. However, its high payout ratio of 93.3% and a cash payout ratio of 68.6% indicate that while dividends are currently covered by cash flows, they are not well supported by earnings, suggesting potential sustainability issues. Despite trading at a significant discount to estimated fair value and expecting an earnings growth of 8.79% annually, Ampol's dividend history has been marked by volatility over the past decade. Recent executive changes could signal shifts in strategy or stability moving forward.

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

NRW Holdings

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

Overview: NRW Holdings Limited, operating in Australia, offers a range of contract services to the resources and infrastructure sectors with a market capitalization of approximately A$1.36 billion.

Operations: NRW Holdings Limited generates revenue primarily through three segments: Mining (A$1.49 billion), MET (A$739.07 million), and Civil (A$593.62 million).

Dividend Yield: 4.8%