The Australian market has climbed 1.1% in the last 7 days and an impressive 18% over the past year, with earnings forecast to grow by 12% annually. In this thriving environment, identifying strong dividend stocks can be a strategic way to capitalize on both income and growth potential; here we explore three top picks on the ASX, including Australian United Investment.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 41 stocks from our Top ASX Dividend Stocks screener.

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

Australian United Investment

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

Overview: Australian United Investment Company Limited is a publicly owned investment manager with a market capitalization of A$1.38 billion.

Operations: Australian United Investment Company Limited generates revenue primarily from its investment segment, amounting to A$57.76 million.

Dividend Yield: 3.3%

Australian United Investment's recent announcements include a regular dividend of A$0.20 and a special dividend of A$0.08, both with an ex-date of August 26, 2024. The company reported net income of A$49.12 million for the year ended June 30, 2024, down from A$56.36 million the previous year. While dividends have been stable and growing over the past decade, their sustainability is questionable due to high payout ratios and limited coverage by earnings and cash flows.

• Delve into the full analysis dividend report here for a deeper understanding of Australian United Investment.

• The valuation report we've compiled suggests that Australian United Investment's current price could be inflated.

Fiducian Group

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

Overview: Fiducian Group Ltd, with a market cap of A$265.36 million, operates through its subsidiaries to provide financial services in Australia.

Operations: Fiducian Group Ltd generates revenue from four primary segments: Funds Management (A$22.08 million), Corporate Services (A$15.06 million), Financial Planning (A$27.69 million), and Platform Administration (A$15.97 million).

Dividend Yield: 4.7%

Fiducian Group offers a reliable dividend yield of 4.66%, with stable and growing payments over the past decade. Recent earnings growth of 22.1% supports its dividend sustainability, as payouts are covered by both earnings and cash flows, with payout ratios at 82.3% and 63.8%, respectively. The recent dividend increase to A$0.211 per share highlights its commitment to shareholders, although the yield remains below top-tier Australian payers at 5.94%.