3 ASX Dividend Stocks To Consider With Yields Up To 4.6%

As the Australian share market experiences a downturn with a potential -0.7% drop, investors are navigating challenging conditions marked by global economic pressures and fluctuating commodity prices. In such an environment, dividend stocks can offer stability and potential income, making them an attractive option for those seeking to balance risk while capitalizing on consistent returns.

Top 10 Dividend Stocks In Australia

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

Here’s a peek at a few of the choices from the screener.

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

Overview: Korvest Ltd manufactures and supplies cable and pipe support systems, fastening solutions, and galvanising services in Australia with a market cap of A$188.70 million.

Operations: Korvest Ltd’s revenue is primarily derived from its Industrial Products segment, which accounts for A$117.93 million, and its Production segment, contributing A$10.81 million.

Dividend Yield: 4.1%

Korvest’s dividend profile shows mixed signals for investors. While the company maintains a reasonable payout ratio of 52.8%, covering dividends with earnings and cash flows, its dividend yield of 4.08% is below the top tier in Australia. Despite recent earnings growth, past dividend payments have been volatile and unreliable, lacking consistent growth or stability over the last decade. The Price-To-Earnings ratio at 13x suggests potential value compared to the broader market average.

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

Overview: Steadfast Group Limited operates as a provider of general insurance brokerage services across Australasia, Asia, and Europe, with a market capitalization of A$4.70 billion.

Operations: Steadfast Group Limited’s revenue segments include a Segment Adjustment of A$1.96 billion.

Dividend Yield: 4.7%

Steadfast Group’s dividend profile is appealing due to its reliable and stable growth over the past decade, supported by a sustainable payout ratio of 61.8% and cash flow coverage at 42.3%. Despite a dividend yield of 4.69% being below Australia’s top tier, recent earnings growth to A$127 million enhances confidence in future payouts. A recent increase in fully franked dividends underscores its commitment to returning value to shareholders amidst high debt levels.

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

Overview: Service Stream Limited operates in the design, construction, operation, and maintenance of infrastructure networks for telecommunications, utilities, and transport sectors in Australia with a market cap of A$1.19 billion.

Operations: Service Stream Limited generates its revenue from three main segments: Telecommunications (A$1.08 billion), Utilities (A$1.01 billion), and Transport (A$162.24 million).

Dividend Yield: 3.1%

Service Stream’s dividend profile is less stable, with a history of volatility and a current yield of 3.08%, which is below the top quartile in Australia. Despite this, its dividends are well-covered by earnings (70.7% payout ratio) and cash flows (38.5% cash payout ratio). Recent announcements include an increase to A$0.03 per share for the period ending December 2025, highlighting efforts to enhance shareholder returns despite declining revenue and net income figures.

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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.

Companies discussed in this article include ASX:KOV ASX:SDF and ASX:SSM.

This article was originally published by Simply Wall St.

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