3 ASX Dividend Stocks To Watch With Up To 7.7% Yield

As the Australian market experienced a positive session with sectors like IT and Materials leading gains, investors are keeping a keen eye on dividend stocks that offer attractive yields amidst fluctuating economic conditions. In this environment, selecting dividend stocks with robust fundamentals and consistent payouts can be particularly appealing for those seeking income stability in their investment portfolios.

Top 10 Dividend Stocks In Australia

Name	Dividend Yield	Dividend Rating
IPH (ASX:IPH)	7.69%	★★★★★☆
Accent Group (ASX:AX1)	7.16%	★★★★★☆
Sugar Terminals (NSX:SUG)	8.12%	★★★★★☆
GR Engineering Services (ASX:GNG)	6.96%	★★★★★☆
Super Retail Group (ASX:SUL)	9.08%	★★★★★☆
Lindsay Australia (ASX:LAU)	7.78%	★★★★★☆
MFF Capital Investments (ASX:MFF)	3.76%	★★★★★☆
Nick Scali (ASX:NCK)	3.60%	★★★★★☆
Lycopodium (ASX:LYL)	7.20%	★★★★★☆
Fiducian Group (ASX:FID)	4.92%	★★★★★☆

Click here to see the full list of 30 stocks from our Top ASX Dividend Stocks screener.

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

Lindsay Australia (ASX:LAU)

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

Overview: Lindsay Australia Limited offers integrated transport, logistics, and rural supply services to the food processing, food services, fresh produce, and horticulture sectors in Australia with a market cap of A$198.35 million.

Operations: Lindsay Australia Limited's revenue segments include Transport (A$573.35 million), Rural (A$160.92 million), Hunters (A$100.09 million), and Corporate (A$5.15 million).

Dividend Yield: 7.8%

Lindsay Australia's dividend yield of 7.78% ranks in the top 25% among Australian payers, supported by a low cash payout ratio of 21.7%, indicating strong coverage by cash flows. However, its dividend history is marked by volatility over the past decade despite recent increases, such as the A$0.023 per share payment announced for April 2025. Valuation metrics suggest good value with a P/E ratio of 8.3x compared to the market average of 17x.

• Dive into the specifics of Lindsay Australia here with our thorough dividend report.
• The valuation report we've compiled suggests that Lindsay Australia's current price could be quite moderate.

Ridley (ASX:RIC)

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

Overview: Ridley Corporation Limited, with a market cap of A$811.47 million, operates in Australia providing animal nutrition solutions through its subsidiaries.

Operations: Ridley Corporation Limited generates revenue through two main segments: Bulk Stockfeeds, contributing A$894.26 million, and Packaged/Ingredients, adding A$389.70 million.

Dividend Yield: 3.7%

Ridley Corporation's dividend yield of 3.74% is below the top tier in Australia, but its dividends are well-covered by earnings (75% payout ratio) and cash flows (35.5% cash payout ratio). Despite a history of volatility, recent increases show growth potential, with a A$0.0475 per share payment announced for April 2025. Ridley trades at a significant discount to its estimated fair value, enhancing its appeal despite an unstable dividend track record over the past decade.

• Get an in-depth perspective on Ridley's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Ridley shares in the market.

Servcorp (ASX:SRV)

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

Overview: Servcorp Limited offers executive serviced and virtual offices, coworking spaces, and IT, communications, and secretarial services with a market cap of A$493.44 million.

Operations: Servcorp Limited generates revenue primarily from its Real Estate - Rental segment, which amounted to A$326.36 million.

Dividend Yield: 4.7%

Servcorp's dividend yield of 4.72% is lower than Australia's top dividend payers, yet its dividends are well-supported by earnings (47.1% payout ratio) and cash flows (13.3% cash payout ratio). Despite a history of volatility, recent increases and a declared A$0.14 per share payment for April 2025 signal growth potential. Servcorp trades significantly below its estimated fair value, offering good relative value despite an unstable dividend history over the past decade.

• Navigate through the intricacies of Servcorp with our comprehensive dividend report here.
• According our valuation report, there's an indication that Servcorp's share price might be on the cheaper side.

Turning Ideas Into Actions

• Dive into all 30 of the Top ASX Dividend Stocks we have identified here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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.

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