ASX Dividend Stocks To Consider In January 2025

As the Australian market experiences marginal fluctuations, with the ASX200 slightly down at 8,248 points and sectors like Information Technology and Real Estate showing positive momentum, investors are keenly observing dividend stocks for potential stability and income. In such a dynamic environment, selecting dividend stocks that demonstrate resilience in diverse sector performances can be an effective strategy for those seeking steady returns amidst market variability. Here, we highlight some top ASX dividend stocks to consider in January 2025, based on their recent performance and growth potential.

1. Collins Foods (ASX:CKF)
* Dividend Yield: 3.59%
* Dividend Rating: ★★★★★☆☆
* Overview: Collins Foods Limited operates, manages, and administers restaurants in Australia and Europe with a market cap of A$870.65 million.
* Operations: Collins Foods Limited generates revenue through its restaurant operations, with A$54.38 million from Taco Bell Australia, A$313.47 million from KFC Restaurants Europe, and A$1.12 billion from KFC Restaurants Australia.
* Dividend Yield: 3.6%
* Collins Foods offers a stable dividend history, with payments reliably growing over the past decade. Despite a recent decrease to A$0.11 per share for the six months ended October 2024, dividends remain well-covered by earnings and cash flows, boasting payout ratios of 59.1% and 33.3%, respectively. The company trades below fair value estimates and peers, though its dividend yield of 3.59% is modest compared to top Australian payers.
2. QBE Insurance Group (ASX:QBE)
* Dividend Yield: 3.64%
* Dividend Rating: ★★★★☆☆
* Overview: QBE Insurance Group Limited underwrites general insurance and reinsurance risks across the Australia Pacific, North America, and international markets, with a market cap of A$29.64 billion.
* Operations: QBE Insurance Group Limited generates revenue through its segments: International ($9.56 billion), North America ($7.71 billion), and Australia Pacific ($5.91 billion).
* Dividend Yield: 3.6%
* QBE Insurance Group's dividend payments have been volatile over the past decade, despite recent growth. While trading at 57.3% below estimated fair value, its dividends are well-covered by earnings and cash flows, with payout ratios of 42.9% and 19.3%, respectively. However, its dividend yield of 3.64% is lower than Australia's top payers' average of 6.13%. A recent A$45 million fixed-income offering may impact future financial stability and dividend reliability.
3. Ricegrowers (ASX:SGLLV)
* Dividend Yield: 4.94%
* Dividend Rating: ★★★★☆☆
* Overview: Ricegrowers Limited is a rice food company with operations in Australia, New Zealand, the Pacific Islands, the Middle East, the United States, and internationally; it has a market cap of A$722.32 million.
* Operations: Ricegrowers Limited generates revenue through its segments: Riviana (A$228.15 million), Cop Rice (A$249.32 million), Rice Food (A$127.76 million), Rice Pool (A$477.65 million), Corporate Segment (A$41.03 million), and International Rice (A$892 million).
* Dividend Yield: 4.9%
* Ricegrowers Limited's dividend payments have been volatile over the past decade, though they are currently well-covered by earnings and cash flows, with payout ratios of 56.3% and 41%, respectively. The company recently declared a A$0.15 per share dividend for H1 2025. Despite trading at a significant discount to fair value, its dividend yield of 4.94% is below the top quartile in Australia, and revenue remained stable year-over-year at A$910.67 million for H1 FY25.



In conclusion, investors seeking steady returns amidst market variability can benefit from selecting dividend stocks within sectors that have shown resilience and growth potential, such as Information Technology and Real Estate. By considering the top ASX dividend stocks highlighted in this article, investors can make informed decisions based on the companies' recent performance, growth potential, and dividend yields. As always, it is essential to conduct thorough research and consider the specific risks and challenges associated with each investment before making a decision.