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Charter Hall Group and two other Australian dividend stocks to consider

Amid a tough day on the ASX200, where consumer discretionary sectors particularly struggled and only energy posted modest gains, investors may be looking for stability and potential income from dividend stocks. In times of uncertainty, companies with a history of stable dividends can provide a semblance of security and predictability in an otherwise volatile market environment.

Top 10 Dividend Stocks in Australia

Name

Dividend yield

Dividend rating

Lindsay Australia (ASX:LAU)

6.19%

★★★★★☆

Trust Group (ASX:FID)

4.04%

★★★★★☆

Nick Scali (ASX:NCK)

4.76%

★★★★★☆

Centuria Capital Group (ASX:CNI)

6.78%

★★★★★☆

Charter Hall Group (ASX:CHC)

3.64%

★★★★★☆

First investments (ASX:PMV)

4.70%

★★★★★☆

Fortescue (ASX:FMG)

7.67%

★★★★★☆

Diversified United Investment (ASX:DUI)

3.20%

★★★★★☆

Rice Farmers (ASX: SGLLV)

8.09%

★★★★☆☆

New Hope (ASX:NHC)

9.29%

★★★★☆☆

Click here to see the full list of 29 stocks in our pick of the top dividend stocks.

Let’s explore several noteworthy options from the filter results.

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

Preview: Charter Hall Group, a leading real estate investment and fund management group in Australia, has a market capitalization of approximately A$5.78 billion.

Operations: Charter Hall Group generates its revenue primarily through fund management, which contributes A$515.60 million, and real estate investments, which add A$142.20 million.

Dividend yield: 3.6%

Charter Hall Group’s recent financial performance shows a significant decline in net profit and revenue for the six months ended December 31, 2023, with sales falling to A$311.4 million from A$539.3 million for the year previous year, and net profit down to A$48.9 million from A$179.3 million. Despite this downturn, Charter Hall maintains a stable dividend history over the past decade and effectively covers its dividends with its earnings and cash flow, with payout ratios of 43.8% and 45.3% respectively. However, its dividend yield of 3.61% is below the top quartile of Australian dividend stocks, at 6.25%.

ASX: CHC dividend history for May 2024ASX: CHC dividend history for May 2024

ASX: CHC dividend history for May 2024

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

Preview: Fortescue Ltd is an Australia-based global iron ore company involved in the exploration, development, production and processing of iron ore, with a market capitalization of approximately A$81.94 billion.

Operations: Fortescue Ltd generates revenue primarily from its metals segment, which brought in $18.47 billion, and a more modest contribution from its energy operations at $79 million.

Dividend yield: 7.7%

Fortescue’s recent declaration of a fully francised interim dividend of AU$1.08 per share, with a payout of 65% of first half net profits, underlines its commitment to shareholder returns. Despite this, the company’s dividend history has been marked by volatility over the past decade. For the first half of 2024, Fortescue recorded significant growth in sales and net profit, reaching $9.51 billion and $3.34 billion, respectively. However, its dividends are only moderately covered by earnings and cash flow, with payout ratios of 74.2% and 73.1%, indicating potential sustainability concerns amid falling earnings. expected profits over the next three years.

ASX: FMG Dividend History May 2024ASX: FMG Dividend History May 2024

ASX: FMG Dividend History May 2024

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

Preview: Lindsay Australia Limited operates in Australia and provides integrated transport, logistics and rural supply services primarily to sectors such as food processing, food services, fresh produce and horticulture, with a market capitalization of approximately 288.99 million Australian dollars.

Operations: Lindsay Australia Limited generates revenue primarily through its transportation and rural supplies segments, with A$571.38 million from transportation services and A$158.73 million from rural supplies.

Dividend yield: 6.2%

Lindsay Australia Limited has had a mixed record when it comes to dividend reliability, with payments fluctuating over the past decade. Despite this, the earnings and cash flow coverage ratios (43.7% and 38.9%, respectively) suggest that dividends are currently well supported. The company’s shares trade at a 10.7% discount to their estimated fair value, providing an attractive entry point relative to market valuation. Recent financial results confirm the growth, with sales up to A$417.93 million and net profit up to A$18.08 million for the six months ended December 31, 2023.

ASX: LAU dividend history as of May 2024ASX: LAU dividend history as of May 2024

ASX: LAU dividend history as of May 2024

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account 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:CHC ASX:FMG and ASX:LAU.

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