Top 3 ASX Dividend Stocks to Keep an Eye On

2 min read | January 17, 2025 04:29 PM AEDT | By Team Kalkine Media

Top 3 ASX Dividend Stocks to Keep an Eye On — Image source: Shutterstock

New Hope (ASX:NHC)

New Hope Corporation Limited, with a market cap of A$4.17 billion, engages in coal, oil, and gas exploration and production. The company's primary revenue stems from its coal mining operations across New South Wales and Queensland. Despite a generous dividend yield of 7.89%, sustainability concerns arise due to a high cash payout ratio suggesting dividends exceed available free cash flows. While trading below estimated fair value with notable relative discounts, New Hope's dividend history has shown volatility.

Servcorp (ASX:SRV)

Servcorp Limited, valued at A$485.43 million, provides office space services and IT solutions. The company’s well-supported dividends, reflected by a 59.7% payout ratio, maintain a modest yield of 4.8%. Despite past growth, dividend volatility brings its reliability into question, although it trades significantly under estimated fair value.

Southern Cross Electrical Engineering (ASX:SXE)

Southern Cross Electrical Engineering Limited brings electrical services to various sectors with a market cap of A$371.3 million. A dividend yield of 4.3% is underpinned by solid earnings and cash flows, despite below-top-yield standing. Though dividends steadily increased over ten years, significant annual volatility is observed. The stock presents good value, trading below expected fair levels.

Our comprehensive screener has identified a total of 32 top ASX dividend stocks, offering invaluable insights and opportunities for those looking to enhance their investment approach.

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