Top 10 dividend stock in Australia 2023

As we reflect on the year 2023, it becomes evident that certain stocks in the Australian market stood out for their exceptional dividend performance. In a landscape marked by economic fluctuations, these top 10 dividend stocks in Australia demonstrated not just resilience but also a strong commitment to rewarding their investors.

This article explores these leading companies, ranging from giants in the resources sector to innovators in financial services, each offering a unique blend of stability and attractive dividend yields. Their performance over the past year has set a benchmark in the market, making them noteworthy for investors seeking valuable insights into dividend investing.

What is Dividend Stocks

Dividend stocks are shares of companies that regularly return a portion of their profits to shareholders in the form of dividends. These payouts, typically issued on a quarterly basis, represent a key way in which companies share their financial success with investors. Dividend stocks are particularly appealing to those seeking a steady income stream, as they offer periodic returns in addition to the potential for stock price appreciation. These stocks are often associated with well-established, financially stable companies that have a consistent record of profitability.

Investing in dividend stocks can be a strategic move for risk-averse investors, as they tend to be less volatile than growth stocks and provide a buffer during market downturns. Furthermore, reinvesting dividends can lead to compound growth, enhancing the long-term value of an investment portfolio.

10 Best Dividend Stock in Australia 2023

List of Australian Stocks

Highest Dividend Yield TTM stocks in Australia in 2023, descend order

1. TerraCom Limited, Div Yield TTM  66.2%

2. Kina Securities Limited, Div Yield TTM  46.04%

3. BSP Financial Group Limited, Div Yield TTM  42.81%

4. Base Resources Limited, Div Yield TTM  39.23%

5. Horizon Oil Limited, Div Yield TTM  28.39%

6. Yancoal Australia, Div Yield TTM  25.14%

7. Fonterra Shareholders' Fund, Div Yield TTM  21.09%

8. Fenix Resources Ltd, Div Yield TTM  20.38%

9. Australia Clinical Labs, Div Yield TTM  17.02%

10. Abacus Group, Div Yield TTM  15.86%

1. TerraCom Limited（TER）

Market Cap: AU$0.36B

PE Ratio (TTM): 1.2

Dividend Yield (TTM): 66.2%

YTD: -47.92%

TerraCom Limited (ASX: TER), a prominent player in the Australian resources sector, is notably involved in the mining and export of coal. Founded in 2009 and headquartered in Brisbane, the company has steadily grown into a key industry name. TerraCom's business model centers on the acquisition and development of high-quality coal assets, leading to a strong presence in both domestic and international markets. Total dividends of 23.5 cents per share have been paid from June 2022 to June 2023. In 2023, the company's dividend yield reached 66%, ranking it as the top dividend-paying stock in Australia for the year.

2. Kina Securities Limited (KSL)

Market Cap: AU$0.23B

PE Ratio (TTM): 1.3

Dividend Yield (TTM): 46.04%

YTD: 16.39%

Kina Securities Limited (ASX: KSL) is a dynamic financial services provider in the Australian market, with a diverse portfolio that extends into the Pacific region. Established in 1985 and headquartered in Port Moresby, Papua New Guinea, Kina Securities operates with a dual listing on the Australian Securities Exchange and the Port Moresby Stock Exchange. The company offers a broad range of financial solutions including banking services, wealth management, and insurance products. Its commitment to providing innovative and customer-centric services has enabled it to carve a niche in the competitive financial sector. Kina Securities' growth trajectory has been marked by strategic expansions and partnerships, aimed at broadening its client base and enhancing its service offerings.

3. BSP Financial Group Limited (BFL)

Market Cap: AU$2.5B

PE Ratio (TTM): 1.5

Dividend Yield (TTM): 42.81%

YTD: 24.77%

BSP Financial Group Limited (ASX: BFL) is a leading banking and financial services group in the Pacific Region, with a significant presence in Papua New Guinea. Established in 1957 and headquartered in Port Moresby, BSP has evolved into the largest bank in the South Pacific, serving customers across Papua New Guinea, Fiji, Solomon Islands, Samoa, Tonga, Vanuatu, and Cambodia. The group offers a comprehensive range of banking and financial services, including retail banking, commercial and corporate banking, wealth management, and insurance. Known for its strong commitment to financial inclusion and community development, BSP Financial Group has been instrumental in driving economic growth and stability in the region. Its focus on customer-centric solutions, digital innovation, and sustainable business practices has made it a preferred choice for customers and investors alike. In 2023, BSP's robust performance and consistent dividend payout policy further solidified its position as a reliable and attractive stock for dividend investors in Australia.

4. Base Resources Limited (BSE)

Market Cap: AU$0.17B

PE Ratio (TTM): Loss

Dividend Yield (TTM): 39.23%

YTD: -23.48%

Base Resources Limited (ASX: BSE) is a mid-tier mineral sands producer recognized for its significant contributions to the mining sector. Established in 2008 and headquartered in West Perth, Australia, Base Resources specializes in the exploration and development of mineral sands deposits, a critical source of materials like ilmenite, rutile, and zircon, which are essential for various industrial processes. The company's flagship operation, the Kwale Project in Kenya, is a world-class asset that has positioned Base Resources as a significant player in the global mineral sands industry. Their commitment to sustainable mining practices, community engagement, and environmental stewardship has earned them a strong reputation in the industry. Base Resources' strategic focus on expanding its production footprint and maintaining high operational efficiency has been key to its financial success. In 2023, the company's impressive performance and dedication to delivering shareholder value were reflected in its attractive dividend yield, making it a standout choice for investors interested in the resources sector.

5. Horizon Oil Limited (HZN)

Market Cap: AU$0.25B

PE Ratio (TTM): 4

Dividend Yield (TTM): 28.39%

YTD: 46.86%

Horizon Oil Limited (ASX: HZN) is a notable Australian oil exploration and production company, playing a significant role in the energy sector. Founded in 1969 and headquartered in Sydney, Horizon Oil has developed a specialized expertise in the exploration, development, and production of petroleum resources. The company's operations span several key regions in the Asia-Pacific area, including assets in Papua New Guinea, China, and New Zealand. Horizon Oil is known for its strategic approach to asset development, focusing on regions with substantial growth potential and manageable geopolitical risk.

6. Yancoal Australia (YAL)

Market Cap: AU$7.0B

PE Ratio (TTM): 2.5

Dividend Yield (TTM): 25.14%

YTD: -3.86%

Listed on both the ASX (ASX: YAL) and HKSE (3668), Yancoal Australia Ltd, ASX's largest pure-play coal producer, is majority-owned by Yankuang Energy Group Company Limited and it stands out for its impressive dividend payouts. Yancoal has expanded through strategic acquisitions, owning and operating 11 coal mines across New South Wales, Queensland, and Western Australia. Its diverse portfolio includes premium thermal, semi-soft coking, and PCI coals, catering primarily to the export market. In 2020, the company produced 38.3 million tonnes of coal and has since returned almost $1 billion in dividends to shareholders. In 2023, Yancoal announced a final dividend of 37 cents per share, following an interim dividend of 70 cents, totaling $1.07 per share for the year. This substantial yield, accounting for over one-fifth of its current share price, marks a significant return to shareholders.

7. Fonterra Shareholders' Fund (FSF)

Market Cap: AU$348.0M

PE Ratio (TTM): /

Dividend Yield (TTM): 21.09%

YTD: +58.60%

Fonterra Shareholders' Fund (ASX: FSF), based in New Zealand, is a managed investment scheme that offers investors economic rights in Fonterra Co-operative Group Limited. It operates by acquiring these rights and issuing units to investors, providing returns based on Fonterra's financial performance. Founded in 2012 and listed on both NZX and ASX, FSF gives non-farmer investors access to Fonterra's returns without direct share ownership. In 2023, Fonterra, riding high on a record profit of $1.6 billion, announced a final dividend of 40c, adding to a 10c interim payout and a 50c special dividend from asset sales. These dividends, combined with a strong balance sheet and robust demand for its products, position Fonterra as a promising dividend stock on the ASX in 2023.

8. Fenix Resources Ltd (FEX)

Market Cap: AU$197.8M

PE Ratio (TTM): 5.9

Dividend Yield (TTM): 20.38%

YTD: +17.36%

Fenix Resources Ltd, an Australia-based resource exploration company, specializes in iron ore mining in Western Australia. Listed on the ASX under the ticker FEX, the company's Iron Ridge Mine in the Mid-West region has been producing high-grade ore since December 2020, with an annual production rate of 1.3 million tonnes and over 3 million tonnes exported to date. Fenix's efficient Fenix-Newhaul transport system to Geraldton Port enhances its operations, supporting extensive loading and storage. The company has shown strategic growth through the acquisition of Mount Gibson Iron assets and rights to the Beebyn-W11 deposit, setting the stage for further expansion. Their flagship Iron Ridge Iron Ore project is renowned for hosting Western Australia's highest-grade iron ore. Fenix Resources operates through two segments: Iron Ridge Project and Trucking Joint Venture, offering additional logistics services through Fenix-Newhaul. In 2023, Fenix Resources distributed a dividend of 2.0 cents per share to its shareholders.

9. Australia Clinical Labs (ACL)

Market Cap: AU$557.2M

PE Ratio (TTM): 15.9

Dividend Yield (TTM): 17.02%

YTD: -1.16%

Australian Clinical Labs Limited (ASX: ACL), a prominent private pathology service provider in Australia, administers an extensive suite of tests and services. Their offerings encompass routine pathology, advanced genetics, cancer diagnostics, and more. With a network spanning Victoria, New South Wales, Western Australia, South Australia, Queensland, and the Northern Territory, ACL operates 75 NATA-accredited laboratories. These facilities collectively perform over 12 million episodes annually, serving a diverse clientele that includes doctors, specialists, hospitals, and corporate clients. Reflecting a commitment to patient care and medical advancement, ACL emphasizes the integration of skilled professionals, scientific leadership, and cutting-edge technology to enhance and save lives. In 2023, the company demonstrated its financial reliability by declaring a dividend of AU$0.07 per share, with the last ex-dividend date recorded on September 14, 2023. This payout showcases ACL's dedication to delivering value to its shareholders while maintaining its mission to support healthcare decision-making.

10. Abacus Group (ABG)

Market Cap: AU$996.4M

PE Ratio (TTM): 38.4

Dividend Yield (TTM): 15.86%

YTD: 12.51%

Abacus Group is a well-diversified property investment and management company operating in Australia. The company invests in commercial office, retail, and self-storage real estate assets to create potential for enhanced income growth and ultimately create value. Abacus Group's strong asset-backed, annuity style business model makes it a reliable dividend stock for investors. The company pays distributions twice a year, usually in February and August. In 2023, Abacus Group declared a total dividend of AUD 0.1365 per share, indicating the company's commitment to providing consistent returns to its shareholders. With its market insight, repositioning capability, and strategic partnering, Abacus Group is well-positioned to continue delivering value to its shareholders in the future. Abacus Group is a solid dividend stock to consider for investors looking for a reliable income stream from the property sector in Australia.