Advertisement
Australia markets close in 3 hours 54 minutes
  • ALL ORDS

    8,038.60
    +63.50 (+0.80%)
     
  • ASX 200

    7,801.30
    +67.60 (+0.87%)
     
  • AUD/USD

    0.6660
    +0.0002 (+0.03%)
     
  • OIL

    81.64
    +0.01 (+0.01%)
     
  • GOLD

    2,339.00
    -5.40 (-0.23%)
     
  • Bitcoin AUD

    90,788.63
    -4,127.12 (-4.35%)
     
  • CMC Crypto 200

    1,257.72
    -52.00 (-3.97%)
     
  • AUD/EUR

    0.6202
    +0.0004 (+0.07%)
     
  • AUD/NZD

    1.0875
    +0.0008 (+0.07%)
     
  • NZX 50

    11,620.74
    -7.12 (-0.06%)
     
  • NASDAQ

    19,474.62
    -225.81 (-1.15%)
     
  • FTSE

    8,281.55
    +43.83 (+0.53%)
     
  • Dow Jones

    39,411.21
    +260.88 (+0.67%)
     
  • DAX

    18,325.58
    +162.06 (+0.89%)
     
  • Hang Seng

    18,208.09
    +180.38 (+1.00%)
     
  • NIKKEI 225

    39,005.33
    +200.68 (+0.52%)
     

One ASX Dividend Stock To Embrace And One To Sidestep In April 2024

In the pursuit of reliable dividend stocks on the ASX, it is crucial for investors to consider the stability of dividend payments. While some companies offer attractive and increasing dividends, others have a history of significant cuts, which could signal underlying financial challenges. Understanding these dynamics is key to selecting stocks that not only provide immediate income but also offer long-term investment security.

Top 10 Dividend Stocks In Australia

Name

Dividend Yield

Dividend Rating

Auswide Bank (ASX:ABA)

9.75%

★★★★★☆

Nick Scali (ASX:NCK)

4.75%

★★★★★☆

Fiducian Group (ASX:FID)

4.04%

★★★★★☆

Joyce (ASX:JYC)

6.83%

★★★★★☆

Korvest (ASX:KOV)

6.63%

★★★★★☆

Centuria Capital Group (ASX:CNI)

6.67%

★★★★★☆

Charter Hall Group (ASX:CHC)

3.56%

★★★★★☆

Premier Investments (ASX:PMV)

4.58%

★★★★★☆

Fortescue (ASX:FMG)

8.05%

★★★★★☆

Diversified United Investment (ASX:DUI)

3.20%

★★★★★☆

Click here to see the full list of 45 stocks from our Top Dividend Stocks screener.

ADVERTISEMENT

Underneath we present one of the stocks filtered out by our screen and one to sidestep.

One To Reconsider

Viva Energy Group

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

Overview: The company operates as an energy provider in Australia, Singapore, and Papua New Guinea with a market capitalization of approximately A$5.72 billion.

Operations: The company generates revenue through three primary segments: Convenience & Mobility (A$10.10 billion), Commercial & Industrial (A$16.64 billion), and Energy & Infrastructure (A$7.32 billion).

Dividend Yield: 3.9%

Viva Energy Group's recent financials reveal a significant drop in net income from A$514.3 million to A$3.8 million year-over-year, with earnings per share plummeting from A$0.333 to A$0.002, reflecting underlying business challenges. Despite this, the company declared a dividend of A$0.071, which appears unsustainable given the payout ratio exceeding 6000% and cash payout ratio at 121%. This raises concerns about the reliability and sustainability of future dividends, especially with profit margins also compressing drastically from 1.9% to just 0.01%.

ASX:VEA Dividend History as at Apr 2024
ASX:VEA Dividend History as at Apr 2024

Top Pick

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 capitalization of approximately A$328.73 million.

Operations: The company generates revenue through its rural supply services amounting to A$158.73 million and transport services totaling A$571.38 million.

Dividend Yield: 5.7%

Lindsay Australia Limited's recent financial performance shows a positive trajectory with sales increasing to A$417.93 million and net income rising to A$18.08 million, up from the previous year. The company declared a cash dividend of A$0.021, supported by a sustainable payout ratio of 43.7% and cash payout ratio at 38.7%. However, despite these gains, LAU's dividends have shown volatility over the past decade and currently yield 5.69%, which is below the top quartile of Australian dividend payers at 6.15%.

ASX:LAU Dividend History as at Apr 2024
ASX:LAU Dividend History as at Apr 2024

Taking Advantage

Contemplating Other Strategies?

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:VEA and ASX:LAU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com