Harvey Norman Holdings And Two Other ASX Dividend Stocks To Consider

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In the past year, the Australian market has seen a modest increase of 6.5%, despite a recent drop of 1.4% over the last seven days. In this dynamic environment, dividend stocks like Harvey Norman Holdings can offer investors potential stability and steady income, especially with earnings forecasted to grow by 13% annually.

Top 10 Dividend Stocks In Australia

Name

Dividend Yield

Dividend Rating

Collins Foods (ASX:CKF)

3.09%

★★★★★☆

Nick Scali (ASX:NCK)

5.22%

★★★★★☆

Fiducian Group (ASX:FID)

4.09%

★★★★★☆

Charter Hall Group (ASX:CHC)

4.01%

★★★★★☆

Fortescue (ASX:FMG)

9.11%

★★★★★☆

Centuria Capital Group (ASX:CNI)

7.27%

★★★★★☆

Eagers Automotive (ASX:APE)

7.17%

★★★★★☆

Premier Investments (ASX:PMV)

4.56%

★★★★★☆

Diversified United Investment (ASX:DUI)

3.17%

★★★★★☆

Australian United Investment (ASX:AUI)

3.59%

★★★★☆☆

Click here to see the full list of 27 stocks from our Top ASX Dividend Stocks screener.

Let's dive into some prime choices out of from the screener.

Harvey Norman Holdings

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

Overview: Harvey Norman Holdings Limited operates in integrated retail, franchise, property, and digital system sectors with a market capitalization of approximately A$5.26 billion.

Operations: Harvey Norman Holdings Limited generates revenue primarily through various retail segments, including A$982.46 million from New Zealand, A$204.83 million from Slovenia & Croatia, A$691.09 million from Singapore & Malaysia, A$237.17 million from non-franchised retail, and A$676.83 million from Ireland & Northern Ireland.

Dividend Yield: 4.7%

Harvey Norman Holdings (HVN) offers a dividend yield of 4.74%, which is below the top quartile in the Australian market. Despite this, its dividends are sustainably covered by earnings and cash flows, with payout ratios of 73.4% and 39.2% respectively. However, HVN has shown a volatile dividend history over the past decade and currently trades at a significant discount to estimated fair value, suggesting potential undervaluation relative to peers despite lower profit margins compared to last year.

ASX:HVN Dividend History as at Jul 2024
ASX:HVN Dividend History as at Jul 2024

JB Hi-Fi

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

Overview: JB Hi-Fi Limited operates as a retailer of home consumer products, with a market capitalization of approximately A$6.69 billion.

Operations: JB Hi-Fi Limited generates revenue through its segments: The Good Guys at A$2.66 billion, JB Hi-Fi Australia at A$6.57 billion, and JB Hi-Fi New Zealand at A$0.28 billion.