Top ASX Dividend Stocks To Watch In July 2024
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Over the last 7 days, the Australian market has remained flat, but it has risen 6.6% over the past 12 months with earnings forecast to grow by 13% annually. In this environment, identifying strong dividend stocks can be a prudent strategy for investors seeking reliable income and potential growth.
Top 10 Dividend Stocks In Australia
| Name | Dividend Yield | Dividend Rating |
| Lindsay Australia (ASX:LAU) | 6.52% | ★★★★★☆ |
| Collins Foods (ASX:CKF) | 3.06% | ★★★★★☆ |
| Eagers Automotive (ASX:APE) | 6.97% | ★★★★★☆ |
| Centuria Capital Group (ASX:CNI) | 6.82% | ★★★★★☆ |
| Nick Scali (ASX:NCK) | 4.46% | ★★★★★☆ |
| Fiducian Group (ASX:FID) | 4.08% | ★★★★★☆ |
| MFF Capital Investments (ASX:MFF) | 3.11% | ★★★★★☆ |
| Auswide Bank (ASX:ABA) | 9.66% | ★★★★★☆ |
| Charter Hall Group (ASX:CHC) | 3.48% | ★★★★★☆ |
| Premier Investments (ASX:PMV) | 4.10% | ★★★★★☆ |
Click here to see the full list of 30 stocks from our Top ASX Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Eagers Automotive
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Eagers Automotive Limited, with a market cap of A$2.74 billion, owns and operates motor vehicle dealerships in Australia and New Zealand.
Operations: Eagers Automotive Limited generates revenue primarily from Car Retailing (A$9.85 billion) and Property (A$39.68 million).
Dividend Yield: 7.0%
Eagers Automotive's dividend yield of 6.97% ranks in the top 25% of Australian dividend payers, supported by a reasonable cash payout ratio of 55.9%. Despite this, the company's high debt level and historically unstable dividends pose risks. Recent announcements include a share repurchase program for up to A$25.82 million shares and ongoing M&A activities aimed at exceeding revenue growth guidance for 2024, reflecting strategic efforts to bolster financial stability and shareholder value.
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Unlock comprehensive insights into our analysis of Eagers Automotive stock in this dividend report.
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Our valuation report here indicates Eagers Automotive may be undervalued.
Commonwealth Bank of Australia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Commonwealth Bank of Australia, with a market cap of A$229.90 billion, provides financial services in Australia, New Zealand, and internationally.
Operations: Commonwealth Bank of Australia's revenue segments include Retail Banking Services (A$11.77 billion), Business Banking (A$8.54 billion), New Zealand operations (A$2.97 billion), and Institutional Banking and Markets (A$2.58 billion).
Dividend Yield: 3.3%
Commonwealth Bank of Australia’s dividend payments are covered by earnings with a current payout ratio of 78.1%, and forecasted to remain similar in three years. However, its 3.31% dividend yield is low compared to the top 25% of Australian dividend payers, and the dividends have been volatile over the past decade despite overall growth. Recent fixed-income offerings totaling over €1 billion indicate ongoing efforts to manage capital and liquidity effectively amidst these challenges.