Commonwealth Bank of Australia And 2 Other Solid ASX Dividend Stocks

Over the last 7 days, the Australian market has risen 1.7%, contributing to a 12% increase over the past year, with earnings expected to grow by 12% annually in the coming years. In this favorable environment, identifying solid dividend stocks like Commonwealth Bank of Australia and two others can provide investors with stable 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.

Let's explore several standout options from the results in the screener.

Commonwealth Bank of Australia

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

Overview: Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally, with a market cap of A$239.66 billion.

Operations: Commonwealth Bank of Australia's revenue segments include Retail Banking Services (A$12.47 billion), Business Banking (A$8.14 billion), New Zealand operations (A$2.86 billion), and Institutional Banking and Markets (A$2.51 billion).

Dividend Yield: 3.2%

Commonwealth Bank of Australia has a mixed dividend history with payments that have been volatile over the past decade. Currently, its dividends are covered by earnings with a payout ratio of 82.1%, and this is forecasted to remain sustainable at 78.9% in three years. Although its current yield of 3.24% is lower than the top 25% of Australian dividend payers, CBA recently increased its semi-annual dividend to A$2.50 per share payable on September 27, 2024.

• Click here and access our complete dividend analysis report to understand the dynamics of Commonwealth Bank of Australia.

• Our comprehensive valuation report raises the possibility that Commonwealth Bank of Australia is priced higher than what may be justified by its financials.

Collins Foods

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

Overview: Collins Foods Limited operates, manages, and administers restaurants in Australia and Europe with a market cap of A$964.90 million.

Operations: Collins Foods Limited generates revenue from its Taco Bell Restaurants (A$54.38 million), KFC Restaurants in Europe (A$313.47 million), and KFC Restaurants in Australia (A$1.12 billion).

Dividend Yield: 3.4%

Collins Foods Limited has demonstrated strong financial performance, with net income rising to A$76.72 million for the year ended April 28, 2024. The company’s dividends are well-covered by earnings (payout ratio: 59.1%) and cash flows (cash payout ratio: 35.2%). Despite a lower yield of 3.42% compared to top Australian dividend payers, Collins Foods offers stable and growing dividends over the past decade, supported by robust earnings growth and trading at good value relative to peers.

• Delve into the full analysis dividend report here for a deeper understanding of Collins Foods.

• Our valuation report here indicates Collins Foods may be undervalued.

Super Retail Group

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

Overview: Super Retail Group Limited operates retail businesses specializing in auto, sports, and outdoor leisure products across Australia and New Zealand with a market cap of A$3.98 billion.

Operations: Super Retail Group Limited's revenue segments include Rebel at A$1.29 billion, Macpac at A$214 million, Super Cheap Auto (SCA) at A$1.50 billion, and Boating, Camping and Fishing (BCF) at A$879.10 million.

Dividend Yield: 6.7%

Super Retail Group offers a compelling dividend yield of 6.75%, placing it in the top 25% of Australian dividend payers. Despite a payout ratio of 64.9% and cash payout ratio of 53.7%, indicating dividends are well-covered by earnings and cash flows, its dividend history has been volatile with occasional decreases. Recent announcements include an ordinary fully franked dividend of A$0.37 per share and a special fully franked dividend of A$0.50 per share, both payable on October 17, 2024, following the ex-dividend date on September 9, 2024.

• Click to explore a detailed breakdown of our findings in Super Retail Group's dividend report.

• Our valuation report unveils the possibility Super Retail Group's shares may be trading at a discount.

Summing It All Up

• Take a closer look at our Top ASX Dividend Stocks list of 36 companies by clicking here.

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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• 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:CBA ASX:CKF and ASX:SUL.

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