When seeking reliable dividend income from Australian stocks, it is important for investors to be cautious of companies with unstable dividend histories. While a high yield may be tempting, a track record of significant dividend cuts, as seen with Kelsian Group, can signal underlying financial difficulties. Today, we will compare two different examples to help you make informed investment decisions in this area.
Top 10 Dividend Stocks In Australia
1. Collins Foods (ASX:CKF) – Dividend Yield: 3.09%, Dividend Rating: ★★★★★☆
2. Nick Scali (ASX:NCK) – Dividend Yield: 5.26%, Dividend Rating: ★★★★★☆
3. Eagers Automotive (ASX:APE) – Dividend Yield: 7.21%, Dividend Rating: ★★★★★☆
4. Centuria Capital Group (ASX:CNI) – Dividend Yield: 7.07%, Dividend Rating: ★★★★★☆
5. Fiducian Group (ASX:FID) – Dividend Yield: 3.99%, Dividend Rating: ★★★★★☆
6. Fortescue (ASX:FMG) – Dividend Yield: 8.76%, Dividend Rating: ★★★★★☆
7. Charter Hall Group (ASX:CHC) – Dividend Yield: 3.96%, Dividend Rating: ★★★★★☆
8. Premier Investments (ASX:PMV) – Dividend Yield: 4.60%, Dividend Rating: ★★★★★☆
9. Diversified United Investment (ASX:DUI) – Dividend Yield: 3.16%, Dividend Rating: ★★★★★☆
10. Australian United Investment (ASX:AUI) – Dividend Yield: 3.59%, Dividend Rating: ★★★★☆☆
Fiducian Group (ASX:FID) – Top Pick
– Simply Wall St Dividend Rating: ★★★★★☆
– Overview: Fiducian Group Ltd operates as a financial services provider in Australia, with a market capitalization of approximately A$239.23 million.
– Operations: The company generates revenue through Funds Management, Corporate Services, Financial Planning, and Platform Administration.
– Dividend Yield: 4%
– Fiducian Group has a strong track record of dividend reliability, consistently increasing payouts over the past decade. The current yield is 4.09%, supported by earnings and cash flows, with payout ratios at 83.7% and 60.5%, respectively.
Kelsian Group (ASX:KLS) – One To Reconsider
– Simply Wall St Dividend Rating: ★★☆☆☆☆
– Overview: Kelsian Group Limited operates in land and marine transport and tourism services across Australia, the United States, Singapore, and the United Kingdom, with a market capitalization of approximately A$1.30 billion.
– Operations: The company generates revenue through Australian Bus services, International Bus services, and Marine and Tourism activities.
– Dividend Yield: 3.6%
– Kelsian Group’s dividend history shows instability, with significant drops and a current yield below the Australian market’s top quartile. The high payout ratio of 148.2% suggests dividends are not adequately covered by earnings or cash flows.
In conclusion, it is essential for investors to carefully evaluate the dividend histories of Australian stocks before making investment decisions. While some companies like Fiducian Group offer stable and reliable income streams, others like Kelsian Group may present financial challenges. Conducting thorough research and analysis can help investors make informed choices in this area.