Over the last 7 days, the Australian market has remained flat, yet it has shown a robust performance with a 20% increase over the past year and earnings forecasted to grow by 12% annually. In this context of steady growth, identifying dividend stocks that offer reliable income and potential for capital appreciation can be an attractive strategy for investors seeking stability and returns.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 36 stocks from our Top ASX Dividend Stocks screener.

We'll examine a selection from our screener results.

Ampol

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

Overview: Ampol Limited is involved in the purchasing, refining, distributing, and marketing of petroleum products across Australia, New Zealand, Singapore, and the United States with a market cap of A$6.76 billion.

Operations: Ampol Limited's revenue is derived from its segments in New Zealand (A$5.49 billion), Convenience Retail (A$5.97 billion), and Fuels and Infrastructure (A$34.46 billion).

Dividend Yield: 8.5%

Ampol's dividend landscape presents a mixed scenario. Despite a recent interim dividend of A$0.60 per share, covered by a 61% payout ratio from earnings, its dividends have historically been volatile and not well-covered by free cash flows, with a high cash payout ratio of 115.2%. Earnings surged significantly to A$235.2 million in H1 2024, up from A$79.1 million the previous year, potentially supporting future payouts if sustained.

• Click here and access our complete dividend analysis report to understand the dynamics of Ampol.

• Our comprehensive valuation report raises the possibility that Ampol is priced lower than what may be justified by its financials.

Grange Resources

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

Overview: Grange Resources Limited operates an integrated iron ore mining and pellet production business in Australia and internationally, with a market cap of A$318.27 million.

Operations: Grange Resources Limited generates revenue primarily from its ore mining segment, amounting to A$570.41 million.

Dividend Yield: 7.3%

Grange Resources offers a compelling dividend yield of 7.27%, ranking in the top 25% among Australian dividend payers, with payments well-covered by earnings and cash flows, boasting low payout ratios of 21.8% and 11.6%, respectively. However, its dividends have been unstable over the past decade without growth or consistency. Recent financials show a decline in sales to A$234.05 million and net income to A$26.53 million for H1 2024, alongside board changes potentially influencing future strategies.