Yahoo Finance Commonwealth Bank of Australia And 2 Other ASX Dividend Stocks To Consider
As the ASX200 navigates a slight downturn at the start of the new financial year, with particular pressure on the IT sector, investors might look towards more resilient investment opportunities. Amidst varying sector performances and economic stimuli affecting materials and energy stocks, dividend-paying stocks such as Commonwealth Bank of Australia could offer a degree of stability and potential income in uncertain times.
Top 10 Dividend Stocks In Australia
Name | Dividend Yield | Dividend Rating |
Collins Foods (ASX:CKF) | 3.11% | ★★★★★☆ |
Lindsay Australia (ASX:LAU) | 6.59% | ★★★★★☆ |
Nick Scali (ASX:NCK) | 5.22% | ★★★★★☆ |
Fiducian Group (ASX:FID) | 4.02% | ★★★★★☆ |
Fortescue (ASX:FMG) | 9.17% | ★★★★★☆ |
Centuria Capital Group (ASX:CNI) | 7.12% | ★★★★★☆ |
Eagers Automotive (ASX:APE) | 7.09% | ★★★★★☆ |
Premier Investments (ASX:PMV) | 4.49% | ★★★★★☆ |
Charter Hall Group (ASX:CHC) | 3.92% | ★★★★★☆ |
Diversified United Investment (ASX:DUI) | 3.17% | ★★★★★☆ |
Click here to see the full list of 28 stocks from our Top ASX Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Commonwealth Bank of Australia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Commonwealth Bank of Australia, operating in Australia, New Zealand, and internationally, offers a range of financial services and has a market capitalization of approximately A$211.03 billion.
Operations: Commonwealth Bank of Australia generates revenue from several segments including New Zealand (A$2.97 billion), Business Banking (A$8.54 billion), Institutional Banking and Markets (A$2.58 billion), and Retail Banking Services including Bankwest (A$11.77 billion).
Dividend Yield: 3.6%
Commonwealth Bank of Australia's current dividend coverage is adequate, with earnings covering 78.1% of payouts and a forecast to maintain similar coverage at 77.6% in three years. However, its dividend yield of 3.61% is below the top quartile benchmark in the Australian market, which stands at 6.56%. Despite a history of increasing dividends over the last decade, payments have shown volatility and unreliability during that period. Recently, CBA has been active in fixed-income markets, issuing various bonds to strengthen its financial base.
Lindsay Australia
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Lindsay Australia Limited operates in Australia, offering integrated transport, logistics, and rural supply services primarily to sectors such as food processing, food services, fresh produce, and horticulture, with a market cap of A$284.31 million.
Operations: Lindsay Australia Limited generates revenue primarily through its transport and rural segments, with A$571.38 million from transport services and A$158.73 million from rural supplies.
Dividend Yield: 6.6%
Lindsay Australia offers a dividend yield of 6.59%, placing it in the top 25% of Australian dividend payers. Its dividends are well-supported, with a payout ratio of 43.7% and a cash payout ratio of 38.9%. Although earnings grew by 50.3% last year, the company's dividend history over the past decade has been unstable and unreliable, reflecting volatility in payments despite an overall increase over ten years. Currently, Lindsay Australia is trading at an attractive valuation, 8.8% below its estimated fair value.
Ricegrowers
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Ricegrowers Limited is a global rice food company with operations in Australia, New Zealand, the Pacific Islands, the Middle East, and the United States, boasting a market capitalization of approximately A$508.42 million.
Operations: Ricegrowers Limited generates revenue through various segments, including Riviana at A$222.01 million, Cop Rice at A$252.75 million, Rice Food at A$121.03 million, Rice Pool at A$498.11 million, and International Rice at A$894.03 million.
Dividend Yield: 7.0%
Ricegrowers Limited, trading 49.6% below its estimated fair value, offers a dividend yield of 6.98%, ranking in the top quartile of Australian dividend payers. Despite a robust earnings growth of 20.5% annually over the past five years and dividends well-covered by earnings (payout ratio: 56.4%) and cash flow (cash payout ratio: 44%), the company's dividend history is marked by instability with volatile payments over its nine-year dividend-paying tenure. Recent financial results show an increase in sales to A$1.87 billion and net income to A$63.14 million for FY2024, supporting potential strategic acquisitions aimed at growth.
Click to explore a detailed breakdown of our findings in Ricegrowers' dividend report.
Our valuation report unveils the possibility Ricegrowers' shares may be trading at a discount.
Key Takeaways
Unlock more gems! Our Top ASX Dividend Stocks screener has unearthed 25 more companies for you to explore.Click here to unveil our expertly curated list of 28 Top ASX Dividend Stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ASX:CBA and ASX:SGLLV.
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