Bendigo and Adelaide Bank and two of the ASX’s top dividend stocks

The Australian market remained flat last week but has experienced significant growth of 22% over the past year, with revenues forecast to grow 12% annually over the coming years. In this context, identifying high dividend shares such as Bendigo and Adelaide Bank can be crucial for investors looking for reliable income and potential growth in this dynamic environment.

Top 10 Dividend Stocks in Australia

Name	Dividend yield	Dividend rating
Perenty (ASX:PRN)	6.75%	★★★★★☆
Nick Scally (ASX:NCK)	4.61%	★★★★★☆
Super Retail Group (ASX:SUL)	7.19%	★★★★★☆
Collins Foods (ASX:CKF)	3.32%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.60%	★★★★★☆
Fiducian Group (ASX:FID)	4.26%	★★★★★☆
National Storage REIT (ASX:NSR)	4.38%	★★★★★☆
Premier Investments (ASX:PMV)	4.45%	★★★★★☆
Santos (ASX:STO)	6.59%	★★★★☆☆
CTI Logistics (ASX:CLX)	5.79%	★★★★☆☆

Click here to see the full list of 37 shares from our Best ASX Dividend Shares screener.

Let’s dive into some of the main screening choices.

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

Review: Bendigo and Adelaide Bank Limited provides banking and financial services to retail customers and small and medium-sized businesses in Australia with a market capitalization of A$6.88 billion.

Operations: Bendigo and Adelaide Bank’s revenue comes primarily from its consumer segment at A$1.12 billion, followed by its business and agribusiness segment at A$761.10 million and its corporate segment at A$67.50 million.

Dividend yield: 5.2%

Bendigo and Adelaide Bank’s dividend profiles paint a mixed picture. The bank recently increased its full-year fully franked dividend to A$0.63 per share, up from A$0.61 in the previous year, indicating growth despite a historically volatile and unreliable dividend history. At the current payout ratio of 65.4%, the dividend is covered by profits, although the yield remains below Australia’s top payers at 5.19%. Recent board changes may impact future strategic directions.

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

Review: Lycopodium Limited offers design and delivery services for projects in the resources, rail infrastructure and industrial processes sectors in Australia with a market capitalization of A$442.07 million.

Operations: Lycopodium Limited’s revenue is primarily derived from its Resources segment, which contributed A$366.49 million, with contributions of A$11.45 million from Manufacturing and A$10.21 million from Rail Infrastructure.

Dividend yield: 6.8%

Lycopodium’s dividend yield of 6.8% puts it in the top 25% of Australian dividend payers, but its dividend has historically been volatile and unreliable. While the recent earnings growth is notable, with net profit rising to A$50.71m, the company’s high cash payout ratio of 122.9% suggests the dividend is not well covered by free cash flow. Despite a reasonable payout ratio of 60.3%, sustainability concerns remain due to non-cash earnings and coverage issues.

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

Review: MFF Capital Investments Limited is an investment manager with a market capitalization of A$2.25 billion.

Operations: MFF Capital Investments Limited generates income primarily from equity investments of A$659.96 million.

Dividend yield: 3.6%

MFF Capital Investments offers a stable and growing dividend, supported by a low payout ratio of 16.8% and a cash payout ratio of 24.1%, indicating strong earnings and cash flow coverage. The latest financial results show impressive growth, with net profit rising to A$447.36 million for the year ended 30 June 2024. Despite its robust dividend yield of 3.6%, it remains below the top quartile in Australia. The final dividend is set at A$0.07 per share and is payable on 1 November 2024.

Where to now?

• You can take a closer look at our list of the top 37 ASX dividend shares by clicking here.
• Have you diversified into these companies? Take advantage of the Simply Wall St Portfolio to keep a close eye on market movements that impact your investments.
• Discover a world of investment opportunities with the free Simply Wall St app and access unparalleled stock analysis across all markets.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only objective methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. We strive to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not factor in recent price-sensitive company announcements or qualitative content. Wall Street simply doesn’t have a position in any of the stocks mentioned.

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