3 Top ASX Dividend Stocks Yielding Up To 6.3%
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In the last week, the Australian market has been flat, but over the past 12 months, it has risen by 10.0%. With earnings expected to grow by 12% per annum in the coming years, identifying strong dividend stocks can be a strategic way to benefit from both income and potential capital appreciation.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Perenti (ASX:PRN) | 7.77% | ★★★★★☆ |
| Collins Foods (ASX:CKF) | 3.72% | ★★★★★☆ |
| Nick Scali (ASX:NCK) | 4.34% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.82% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.66% | ★★★★★☆ |
| National Storage REIT (ASX:NSR) | 4.58% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 3.89% | ★★★★★☆ |
| New Hope (ASX:NHC) | 9.66% | ★★★★☆☆ |
| Grange Resources (ASX:GRR) | 7.14% | ★★★★☆☆ |
| Australian United Investment (ASX:AUI) | 3.49% | ★★★★☆☆ |
Click here to see the full list of 34 stocks from our Top ASX Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
GrainCorp
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: GrainCorp Limited is an agribusiness and processing company with operations in Australasia, Asia, North America, Europe, the Middle East, North Africa, and internationally, and has a market cap of A$1.95 billion.
Operations: GrainCorp Limited generates revenue primarily from its Agribusiness segment, which amounted to A$6.82 billion.
Dividend Yield: 6.1%
GrainCorp's dividend payments are covered by earnings (63.4% payout ratio) and cash flows (37.4% cash payout ratio), indicating sustainability. However, the dividend track record has been volatile over the past decade, making it unreliable despite recent increases. Profit margins have declined from 3.9% to 1.4%, and interest payments are not well covered by earnings, suggesting financial challenges. Recent strategic alliances with IFM Investors and Ampol aim to develop renewable fuels in Australia, potentially enhancing future growth prospects.
JB Hi-Fi
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: JB Hi-Fi Limited (ASX:JBH) is a retailer of home consumer products with a market cap of A$8.56 billion.
Operations: JB Hi-Fi Limited generates revenue from three main segments: A$2.68 billion from The Good Guys, A$6.61 billion from JB Hi-Fi Australia, and A$303.40 million from JB Hi-Fi New Zealand.
Dividend Yield: 3.3%
JB Hi-Fi's dividend payments are covered by earnings (65% payout ratio) and cash flows (42.1% cash payout ratio), indicating sustainability. However, the dividend track record has been volatile over the past decade, making it unreliable. The company recently declared a total ordinary dividend of A$1.83 for the six months ending June 30, 2024, with an ex-dividend date of August 22, 2024. Despite trading slightly below its fair value estimate, JB Hi-Fi's current yield is lower than top-tier Australian dividend payers.