ASX Dividend Stocks Featuring Fortescue And 2 More

As the ASX200 experiences a modest rise, buoyed by gains across all sectors and a notable performance in IT and Materials, investors are keeping a close watch on dividend stocks for their potential to provide steady income amidst market fluctuations. In this environment, selecting dividend stocks that align with current economic trends—such as those benefiting from resurgent commodity prices or expected international stimulus—can be key to building a resilient investment portfolio.

Click here to see the full list of 35 stocks from our Top ASX Dividend Stocks screener.

Let’s review some notable picks from our screened stocks.

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

Overview: Fortescue Ltd is involved in the exploration, development, production, processing, and sale of iron ore across Australia, China, and international markets with a market cap of A$59.98 billion.

Operations: Fortescue Ltd generates revenue from two primary segments: Metals, which contributes $18.13 billion, and Energy, which accounts for $91 million.

Dividend Yield: 10%

Fortescue’s dividend yield is among the top 25% in Australia, supported by a payout ratio of 71.1% and a cash payout ratio of 78.1%, indicating coverage by earnings and cash flows. However, the company’s dividends have been volatile over the past decade, with significant annual drops exceeding 20%. Despite recent earnings growth to US$5.68 billion, future earnings are forecasted to decline significantly, raising concerns about long-term dividend sustainability.

• Get an in-depth perspective on Fortescue’s performance by reading our dividend report here.

• Upon reviewing our latest valuation report, Fortescue’s share price might be too pessimistic.

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

Overview: nib holdings limited, along with its subsidiaries, operates in the underwriting and distribution of private health, life, and living insurance for residents, international students, and visitors in Australia and New Zealand with a market cap of A$2.93 billion.

Operations: nib holdings limited generates revenue through various segments, including Australian Residents Health Insurance (A$2.65 billion), New Zealand Insurance (A$373.10 million), International (Inbound) Health Insurance (A$203.50 million), NIB Travel (A$96.80 million), and Nib Thrive (A$51.30 million).