Bendigo and Adelaide Bank and two of the ASX’s top dividend stocks

Dividend yield: 6.8%

Lycopodium’s dividend yield of 6.8% puts it in the top 25% of Australian dividend payers, but its dividend has historically been volatile and unreliable. While the recent earnings growth is notable, with net profit rising to A$50.71m, the company’s high cash payout ratio of 122.9% suggests the dividend is not well covered by free cash flow. Despite a reasonable payout ratio of 60.3%, sustainability concerns remain due to non-cash earnings and coverage issues.

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

Review: MFF Capital Investments Limited is an investment manager with a market capitalization of A$2.25 billion.

Operations: MFF Capital Investments Limited generates income primarily from equity investments of A$659.96 million.

Dividend yield: 3.6%

MFF Capital Investments offers a stable and growing dividend, supported by a low payout ratio of 16.8% and a cash payout ratio of 24.1%, indicating strong earnings and cash flow coverage. The latest financial results show impressive growth, with net profit rising to A$447.36 million for the year ended 30 June 2024. Despite its robust dividend yield of 3.6%, it remains below the top quartile in Australia. The final dividend is set at A$0.07 per share and is payable on 1 November 2024.

• You can take a closer look at our list of the top 37 ASX dividend shares by clicking here.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only objective methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. We strive to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not factor in recent price-sensitive company announcements or qualitative content. Wall Street simply doesn’t have a position in any of the stocks mentioned.

Companies discussed in this article include ASX:BEN, ASX:LYL and ASX:MFF.

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