The Australian market has shown robust growth, climbing 3.1% over the past week and achieving a 10% increase over the last twelve months, with earnings projected to grow by 13% annually. In such a thriving environment, dividend stocks that offer consistent payouts and potential for capital appreciation can be particularly appealing to investors looking for both stability and growth.

Top 10 Dividend Stocks In Australia

Click here to see the full list of 28 stocks from our Top ASX Dividend Stocks screener.

Let's dive into some prime choices out of from the 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$221.46 billion.

Operations: Commonwealth Bank of Australia's revenue is primarily generated from Retail Banking Services, including Bankwest, which contributes A$11.77 billion, followed by Business Banking at A$8.54 billion, Institutional Banking and Markets at A$2.58 billion, and operations in New Zealand accounting for A$2.97 billion.

Dividend Yield: 3.4%

Commonwealth Bank of Australia's dividend yield stands at 3.44%, lower than the top quartile of Australian dividend stocks at 6.34%. Despite a history of unstable and volatile dividends, current forecasts suggest dividends will be covered by earnings with a payout ratio near 78.1%. Recent strategic fixed-income offerings, including a significant €1 billion in Green Bonds, indicate active capital management which could impact future financial flexibility and dividend sustainability.

• Take a closer look at Commonwealth Bank of Australia's potential here in our dividend report.

• Our valuation report here indicates Commonwealth Bank of Australia may be overvalued.

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 A$490.35 million.

Operations: Ricegrowers Limited generates revenue through various segments, with International Rice contributing A$894.03 million, followed by Rice Pool at A$498.11 million, Cop Rice at A$252.75 million, Riviana at A$222.01 million, and Rice Food at A$121.03 million.

Dividend Yield: 7.2%

Ricegrowers Limited has demonstrated a mixed track record in dividend stability, with payments being volatile over the last 9 years. Despite this, dividends are reasonably covered by both earnings and cash flows, with payout ratios of 56.4% and 44% respectively. Recently, the company reported a robust financial performance for FY2024, showing significant growth in sales and net income compared to the previous year. Additionally, management expressed readiness to pursue strategic acquisitions that align with their long-term objectives.

• Unlock comprehensive insights into our analysis of Ricegrowers stock in this dividend report.

• The valuation report we've compiled suggests that Ricegrowers' current price could be quite moderate.

Shaver Shop Group

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

Overview: Shaver Shop Group Limited operates as a retailer specializing in personal care and grooming products across Australia and New Zealand, with a market capitalization of A$156.56 million.

Operations: Shaver Shop Group Limited generates A$219.66 million from retail store sales of specialist personal grooming products.

Dividend Yield: 8.5%

Shaver Shop Group's dividend history shows variability, with payments not consistently growing over the past 7 years. As of now, dividends are supported by both earnings and cash flows, with a payout ratio of 83.6% and a cash payout ratio of 52.9%. Despite this coverage, the company's dividend yield at 8.54% ranks in the top quartile in Australia. Recent board changes saw Brian Singer retire after significant contributions to strategic direction and business advice.

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

• According our valuation report, there's an indication that Shaver Shop Group's share price might be on the cheaper side.

Summing It All Up

• Navigate through the entire inventory of 28 Top ASX Dividend Stocks here.

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Contemplating Other Strategies?

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

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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:CBA ASX:SGLLV and ASX:SSG.

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