Top ASX Dividend Stocks Yielding Up To 9.5%: A Golden Opportunity
Sunday, Jan 19, 2025 11:42 pm ET
7min read 
In the ever-changing landscape of the Australian Securities Exchange (ASX), investors are always on the lookout for stable, high-yielding investments. Dividend stocks have long been a favorite among income-oriented investors, and with good reason. They provide a steady stream of income, regardless of market conditions. In this article, we'll explore three ASX dividend stocks yielding up to 9.5%, offering investors a golden opportunity to generate consistent income while potentially benefiting from future growth.
1. Grange Resources (ASX:GRR)
Grange Resources is an integrated iron ore mining and pellet production company operating in Australia and internationally. With a market capitalization of A$243.04 million, it offers a high dividend yield of 9.52%, positioning it in the top 25% of Australian payers. Although its dividends have been volatile and unreliable over the past decade, they are well-covered by earnings and cash flows, with payout ratios of 21.8% and 11.6%, respectively. This suggests sustainability from a financial standpoint, even as it trades below estimated fair value. Grange Resources' shares may be trading at a discount, presenting an attractive entry point for income-focused investors.
2. APA Group (ASX:APA)
APA Group is Australia's premier gas infrastructure company, with a narrow economic moat stemming from its unparalleled gas pipeline network. With a dividend yield of 7.6%, it offers a high income stream supported by a reasonable payout ratio of 60.3%. Although its dividends have been historically volatile, they are expected to grow in the coming years, with analysts forecasting fully franked dividends of $0.57 per share in fiscal 2025 and $0.59 in fiscal 2026. This represents forward yields of 7.4% and 8%, respectively, at the current share price of $4.87. APA Group's shares are currently trading at a 20% discount to its fair value estimate, making it an attractive buy for income-focused investors.
3. Aurizon (ASX:AZJ)
Aurizon operates the Central Queensland Coal Network (CQCN) railway under a lease agreement until 2109. With a dividend yield of 5.9%, it offers a solid income stream supported by a payout ratio of 60.3%. Although its dividends have been historically volatile, they are expected to grow in the coming years, with analysts forecasting fully franked dividends of $0.15 for the first half of fiscal year 2025. Aurizon's earnings and dividend growth depend on metallurgical coal production and exports, which are expected to remain relatively flat over the medium term. Its shares are currently trading at a 48% discount to its fair value estimate, making it an attractive buy for income-focused investors.
In conclusion, these three ASX dividend stocks offer attractive yields and potential for growth. However, it is essential to consider other aspects, such as the company's fundamentals, growth prospects, and risks, before making an investment decision. By diversifying your portfolio with a mix of dividend stocks and other investments, you can create a balanced and resilient income stream. Don't miss out on this golden opportunity to generate consistent income and potentially benefit from future growth.
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