Over the last 7 days, the Australian market has risen 1.4% and is up 15% over the last 12 months, with earnings forecast to grow by 12% annually. In this favorable environment, identifying strong dividend stocks like Lindsay Australia becomes crucial for investors seeking steady income and potential growth.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 36 stocks from our Top ASX Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Lindsay Australia

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

Overview: Lindsay Australia Limited (ASX: LAU) offers integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, and horticulture sectors in Australia with a market cap of A$293.99 million.

Operations: Lindsay Australia Limited's revenue segments (in millions of A$) are as follows: Rural: 155.44, Hunters: 87.44, Corporate: 4.99, and Transport: 577.36.

Dividend Yield: 5.2%

Lindsay Australia's dividend payments have increased over the past decade, though they have been volatile. The recent announcement of a fully franked dividend of A$0.028 per share for H1 2024 reflects a decrease, highlighting this instability. Despite a reasonable payout ratio (56%) and strong cash flow coverage (18.7%), the company's profit margins have declined from 5.1% to 3.4%, potentially impacting future dividends. Trading at good value, Lindsay's earnings are forecast to grow annually by 13.52%.

• Delve into the full analysis dividend report here for a deeper understanding of Lindsay Australia.
• The analysis detailed in our Lindsay Australia valuation report hints at an deflated share price compared to its estimated value.

SHAPE Australia

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

Overview: SHAPE Australia Corporation Limited (ASX:SHA) operates in the construction, fitout, and refurbishment of commercial properties across Australia and has a market cap of A$225.52 million.

Operations: SHAPE Australia Corporation Limited (ASX:SHA) generates revenue primarily from its heavy construction segment, which amounted to A$839 million.

Dividend Yield: 6.6%

SHAPE Australia's dividend payments have increased over the past three years, though they remain unstable and volatile. Recent earnings growth of 52.6% has bolstered its payout ratio to 88.3%, with cash flow coverage at 53.2%. Trading at 35.1% below estimated fair value, SHAPE's dividends are currently covered by both earnings and cash flows, despite a history of unreliable payments. The company announced a fully franked dividend of A$0.09 per share for H1 2024, payable on September 10, 2024.

• Unlock comprehensive insights into our analysis of SHAPE Australia stock in this dividend report.
• According our valuation report, there's an indication that SHAPE Australia's share price might be on the cheaper side.

Smartgroup

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

Overview: Smartgroup Corporation Ltd, with a market cap of A$1.08 billion, provides employee management services in Australia.

Operations: Smartgroup Corporation Ltd's revenue segments include Vehicle Services (A$19.53 million), Outsourced Administration (A$263.07 million), and Software, Distribution, and Group Services (A$41.02 million).

Dividend Yield: 6.1%

Smartgroup's dividend yield of 6.14% places it in the top 25% of Australian dividend payers, but its payments have been volatile over the past decade. Despite a reasonable payout ratio of 64.6%, the high cash payout ratio (131.2%) indicates dividends are not well covered by free cash flow. Recent earnings growth (18.4%) and a trading value at 50.9% below fair estimate suggest potential value, though sustainability concerns remain due to inconsistent dividend reliability and coverage issues.

• Take a closer look at Smartgroup's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that Smartgroup is priced lower than what may be justified by its financials.

Summing It All Up

• Click here to access our complete index of 36 Top ASX Dividend Stocks.
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• Find companies with promising cash flow potential yet trading below their fair value.

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:LAU ASX:SHA and ASX:SIQ.

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