ASX Dividend Stocks Featuring Three Top Picks

editorial-team@simplywallst.com (Simply Wall St)

Thu, Mar 27, 2025, 3:09 PM 4 min read

The Australian stock market recently experienced a dip, with the ASX200 closing down 0.38% at 7,969 points, as sectors like Real Estate and IT faced notable declines. In such fluctuating conditions, dividend stocks can offer investors a measure of stability and income through regular payouts, making them an attractive option for those seeking to navigate market volatility effectively.

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

Let’s uncover some gems from our specialized screener.

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

Overview: Diversified United Investment Limited is a publicly owned investment manager with a market capitalization of approximately A$1.10 billion.

Operations: Diversified United Investment Limited generates revenue primarily from its investment company segment, amounting to A$46.41 million.

Dividend Yield: 3.1%

Diversified United Investment’s dividend yield of 3.11% is below the top quartile in Australia, but its dividends have been stable and growing over the past decade. Despite this growth, the high payout ratio of 94.2% indicates dividends are not well covered by earnings, though cash flows cover them at an 89.4% cash payout ratio. Recent announcements affirm a franked dividend of A$0.07 per share for December 2025, highlighting ongoing reliability despite coverage concerns.

• Click here to discover the nuances of Diversified United Investment with our detailed analytical dividend report.

• Upon reviewing our latest valuation report, Diversified United Investment’s share price might be too optimistic.

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

Overview: GR Engineering Services Limited offers engineering, procurement, and construction services to the mining and mineral processing sectors both in Australia and internationally, with a market cap of A$499.89 million.

Operations: GR Engineering Services Limited generates revenue from two primary segments: Mineral Processing, contributing A$412.30 million, and Oil and Gas, contributing A$96.61 million.

Dividend Yield: 6.4%

GR Engineering Services’ dividend yield of 6.35% ranks in the top quartile of Australian payers, supported by a cash payout ratio of 35.6%, indicating robust coverage by cash flows. Despite earnings growth and a recent increase to A$0.10 per share, dividends have been volatile over the past decade with an 86% payout ratio suggesting potential sustainability concerns. Recent earnings show significant sales growth to A$272.11 million, bolstering financial stability for future dividends despite past inconsistencies.