Top 10 ASX dividend stocks to watch in November 2024

ASX dividend stocks: What you need to know

When buying shares, investors typically benefit in two ways: from capital gains due to an increase in share price, and from profits paid out in the form of dividends.

Dividend stock investors view a stock’s dividend yield as a key measure of a stock’s value. It offers an insight into how great the return on an investment will be. To calculate the dividend yield, investors simply divide the annual dividend paid by the share price.

To begin initial research, IG offers market screeners to filter out ASX stocks with the highest dividend yields.

Investors should then inspect an individual company’s financial status to determine the future viability of its dividend yield. At a minimum, this should include its historical profit generation, debt levels, and prior dividend history.

Amongst the screening criteria we use are:

• Dividend yield
• Cashflow
• Dividend growth over the last five years
• Market price correlation (beta) based on monthly price movements over the past five years
• Outlook for the next 12 months based on a slowing economy and interest rates peaking

How to trade or invest in ASX dividend stocks

1. Learn more about ASX dividend stocks
2. Find out how to trade or invest in ASX dividend stocks
3. Open an account
4. Place your trade

You can open a position on ASX dividend stocks with us either through share trading or CFD trading. Share trading means that you take direct ownership of the stock.¹ By comparison, derivatives trading – such as CFD trading – allows you to take a position on the price movement of a company’s shares without actually taking ownership of them.

For a complete breakdown of the benefits and drawbacks of each strategy, please click here.

ASX dividend stocks: further important information to consider

Many investors add ASX dividend stocks to their portfolios for the long term. While this is a sound investment strategy, it also means that any errors are correspondingly magnified.

One key thing to note is that the below ‘top 10’ dividend stocks are not the highest yielding. These are stocks that appear to have a decent chance of continuing to pay out dividends, although there’s no guarantee of future success. Investors can often have higher success with lower-yielding shares of growing businesses rather than get caught in a yield trap.

Avoiding yield traps

A ‘yield trap’ is a stock with a high yield underpinned by poor financials. If a company issues a higher-than-normal dividend or its share price falls quickly, it can appear to be high-yielding. However, the yield is calculated using past figures that do not account for very recent performance.

Many investors are caught out by the siren’s song of ultra-high-yield percentages without considering the whole picture.

Often yielding stocks either have low growth potential because management pays out all the profit in dividends, or else they are cyclical stocks such as mining companies that can generate enormous amounts of cash and pay dividends for four years, and then generate almost zero cash on the down cycle.

Accordingly, higher-yielding dividend stocks usually require more active management, while lower-yielding ones come closer to truly passive income. Similarly, compounding by reinvesting dividends can exponentially increase returns.

Diversifying to spread risk

It’s also worth noting that many ASX dividend stocks are blue chips with very low chances of the outsized capital gains that ASX growth stocks can deliver. It can make sense to have a mixed portfolio that offers potentially bigger returns in exchange for a little safety.

Finally, it’s important to consider the concentration or diversification of a company’s interests and revenue. Companies with the most resilient dividends are often the ones with diversified interests in their sector.

And investors should take care to spread their money across multiple sectors, to further reduce risk. Piling all of one’s capital into mining stocks might give a stellar return right now, but usually at the cost of a good night's sleep.

Remember, past performance is not an indicator of future returns.

Top 10 ASX dividend stocks to watch

These shares have been selected because they are the highest-yielding dividend stocks with a dividend cover ratio of 1 or above in November 2024. While they may not necessarily represent the best long-term growth investments, they have garnered significant investor interest.

1. Atlas Arteria Ltd (ASX: ALX)
2. Woodside Energy Group Ltd (ASX: WDS)
3. Bank of Queensland Limited (ASX: BOQ)
4. Endeavour Group Limited (ASX: EDV)
5. QBE Insurance Group Ltd (ASX: QBE)
6. Kelsian Group Ltd (ASX: KLS)
7. Orora Limited (ASX: ORA)
8. Computershare Ltd (ASX: CPU)
9. Washington H. Soul Pattinson & Company Ltd (ASX: SOL)
10. Pinnacle Investment Management Group Ltd (ASX: PNI)

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria Ltd is a prominent global owner, operator, and developer of toll roads, with a diverse portfolio spanning France, Germany, and the United States. The company’s assets include significant interests in the APRR and ADELAC networks in France, the Warnow Tunnel in Germany, and the Chicago Skyway and Dulles Greenway in the United States. These strategic holdings facilitate efficient transportation solutions across key international corridors.

Atlas Arteria’s success stems from its strategic acquisitions and effective management of toll road assets, ensuring consistent revenue streams and long-term growth. The company’s commitment to enhancing infrastructure and delivering reliable services has solidified its position in the global transport sector. For investors, Atlas Arteria offers an attractive proposition with its stable cash flows, regular dividend distributions, and exposure to essential infrastructure assets that are integral to economic activity.

Atlas Arteria has a dividend yield of 8.02% with a dividend cover ratio of 2.2.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group Ltd is Australia’s leading oil and gas producer, with a diverse portfolio of assets spanning the Asia-Pacific, Africa, the Americas, and Europe. The company is renowned for its production of liquefied natural gas (LNG), pipeline gas, crude oil, condensate, and natural gas liquids. Key projects include the North West Shelf, Pluto LNG, and the recently acquired Scarborough gas field, which are pivotal in supplying energy to both domestic and international markets.

Woodside’s success is underpinned by its strategic investments and operational excellence. The company’s recent acquisition of U.S. LNG developer Tellurian Inc. for $1.2 billion marks a significant expansion into the North American market, enhancing its global LNG footprint. Additionally, Woodside has raised its annual production forecast after achieving record third-quarter output, reflecting a ramp-up at the Sangomar facility in Senegal and higher seasonal domestic gas demand. For investors, Woodside offers a compelling proposition with its robust financial performance, strategic growth initiatives, and commitment to delivering shareholder value through consistent dividends and capital growth.

Woodside Energy Group Ltd has a dividend yield of 7.94% with a dividend cover ratio of 1.4.

Bank of Queensland Limited (ASX: BOQ)

Bank of Queensland Ltd is a prominent Australian financial institution offering a comprehensive suite of retail and commercial banking services. With a network of branches and digital platforms, BOQ provides personal banking, business loans, and wealth management solutions, catering to a diverse clientele across the nation. The bank’s strategic initiatives include a significant restructuring plan aimed at enhancing operational efficiency and customer experience. This involves transitioning owner-managed branches to corporate ownership and implementing cost-cutting measures, such as reducing staff numbers, to streamline operations. These efforts are designed to position BOQ for sustainable growth in a competitive banking landscape.

For investors, BOQ presents a compelling opportunity due to its strategic focus on business banking and digital transformation. The bank’s commitment to improving shareholder returns is evident in its recent financial performance, with a reported net interest margin of 1.57%, surpassing analyst expectations. Additionally, BOQ’s proactive approach to restructuring and cost management aims to enhance return on equity beyond the current 5.7%. These factors, coupled with the bank’s established presence in the Australian market, make BOQ a noteworthy stock to consider for those seeking exposure to the financial sector.

Bank of Queensland Ltd has a dividend yield of 4.93% with a dividend cover ratio of 1.1.

Endeavour Group Limited (ASX: EDV)

Endeavour Group Ltd is Australia’s leading retail drinks and hospitality business, operating an extensive network of over 1,600 stores under well-known brands such as Dan Murphy’s and BWS. In addition to its retail operations, Endeavour manages a portfolio of more than 350 licensed venues, including hotels and clubs, making it a significant player in the country’s hospitality sector. The company’s comprehensive approach to the drinks and hospitality market positions it as a central figure in Australia’s social and entertainment landscape.

Endeavour’s success is underpinned by its strategic expansion and adaptability. The company has consistently reported strong financial performance, with revenue increasing by 4% to $12.309 billion in the 2024 fiscal year. This growth is attributed to robust sales in its retail segment and a resilient hospitality division. For investors, Endeavour offers a compelling proposition with its stable cash flows, regular dividend distributions, and exposure to essential consumer staples and hospitality services. The company’s commitment to enhancing customer experiences and expanding its market presence underscores its potential for sustained growth in the evolving retail and hospitality sectors.

Endeavour Group Ltd has a dividend yield of 4.57% with a dividend cover ratio of 1.2.

QBE Insurance Group Ltd (ASX: QBE)

QBE Insurance Group is a leading international insurer and reinsurer in 27 countries. The company was founded in 1886 and is headquartered in Sydney, Australia. QBE offers a wide range of insurance products, including commercial, personal, and specialty lines such as property, auto, agriculture, public/product liability, professional indemnity, workers’ compensation, and marine, energy, and aviation insurance.

QBE has built a strong reputation for its deep expertise in risk management and its ability to provide tailored solutions for both individuals and businesses. The company’s global reach and diversified portfolio make it resilient to regional market fluctuations, offering a stable investment option for those interested in the financial sector. Investors like QBE for its consistent dividend payouts and its strategic focus on maintaining a strong capital base, which supports its ability to manage risks and deliver returns.

QBE Insurance Group has a dividend yield of 4.19% with a dividend cover ratio of 2.2.

Kelsian Group Limited (ASX: KLS)

Kelsian Group Ltd is Australia’s largest integrated multi-modal transport provider and tourism operator, delivering essential journeys through safe and intelligent transport solutions. With over 30 years of experience, Kelsian operates more than 5,500 buses, 115 vessels, and 24 light rail vehicles, facilitating over 367 million customer journeys annually. The company’s operations span Australia, Singapore, the United States, the United Kingdom, and the Channel Islands, reflecting its extensive reach and commitment to enhancing community sustainability and liveability.

Kelsian’s success is underpinned by strategic acquisitions and a focus on sustainable transport solutions. The company operates Australia’s largest zero-emission bus fleet and the country’s largest electrified bus depot, highlighting its leadership in sustainable public transport. Recent expansions include the acquisition of American company All Aboard America!, further diversifying its international portfolio. For investors, Kelsian offers a compelling proposition with its robust financial performance, strategic growth initiatives, and commitment to delivering shareholder value through consistent dividends and capital growth.

Kelsian Group Ltd has a dividend yield of 4.16% and a dividend cover ratio of 1.1.

Orora Limited (ASX: ORA)

Orora Ltd is a leading Australian packaging manufacturer and distributor, offering innovative solutions across various industries. The company operates in two main segments: Orora Australasia, which includes fibre and beverage packaging, and Orora North America, which includes packaging distribution and integrated services. Orora’s global footprint spans Australia, New Zealand, North America, Europe, Asia, and the Middle East, serving over 20,000 customers across diverse end markets.

Orora’s success is underpinned by its strategic acquisitions and focus on sustainable packaging solutions. In September 2024, the company announced the sale of its North American packaging solutions business to Veritiv for A$1.78 billion, aiming to streamline operations and focus on core markets. Additionally, Orora’s acquisition of French luxury glass bottle manufacturer Saverglass for $1.4 billion in 2023 has strengthened its position in the premium packaging market. For investors, Orora presents a compelling opportunity with its robust financial performance, strategic growth initiatives, and commitment to delivering shareholder value through consistent dividends and capital growth.

Orora Ltd has a dividend yield of 3.97% with a dividend cover ratio of 1.7.

Computershare Limited (ASX: CPU)

Computershare Ltd is a global leader in financial administration, offering a diverse range of services, including share registry, employee equity plans, and stakeholder communications. Established in 1978 and headquartered in Melbourne, Australia, the company has expanded its operations across more than 20 countries, serving clients in various industries. Computershare’s comprehensive suite of services supports companies in managing their shareholder and employee relationships effectively.

The company’s success is underpinned by strategic acquisitions and a focus on innovation. In October 2023, Computershare sold its U.S. mortgage services unit to Rithm Capital for $1.13 billion, allowing it to streamline operations and focus on core services. Additionally, Computershare’s robust financial performance, including consistent revenue growth and dividend payments, makes it an attractive option for investors seeking stability and growth in the financial services sector.

Computershare Ltd has a dividend yield of 3.10% with a dividend cover ratio of 1.6.

Washington H. Soul Pattinson & Company Ltd (ASX: SOL)

Washington H. Soul Pattinson & Company Ltd, commonly known as Soul Patts, is a diversified investment house with a rich history dating back to 1872. Originally established as a pharmacy, the company has evolved into a significant investor across various industries, including telecommunications, resources, building materials, and financial services. Notable investments include substantial holdings in TPG Telecom, Brickworks, and New Hope Corporation, reflecting its strategic approach to long-term value creation.

Soul Patts’ success is underpinned by its disciplined investment philosophy and commitment to delivering consistent returns to shareholders. The company has a remarkable track record of paying dividends every year since its listing in 1903, with increasing dividends annually since 2000. This reliability, coupled with a diversified portfolio that mitigates sector-specific risks, makes Soul Patts an attractive option for investors seeking stable and sustainable growth.

Washington H. Soul Pattinson & Company Ltd has a dividend yield of 2.77% and a dividend cover ratio of 1.0.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management Group Ltd is an Australian financial services company specialising in developing and operating investment management businesses. Founded in 2006 and headquartered in Sydney, Pinnacle partners with a diverse range of investment managers, providing them with distribution services, business support, and responsible entity services. This collaborative model enables Pinnacle to offer a broad spectrum of investment strategies across various asset classes, catering to both retail and institutional investors.

Pinnacle’s success is underpinned by its strategic partnerships and commitment to fostering the growth of its affiliate managers. The company’s financial performance reflects this approach, with a net profit after tax attributable to shareholders of $90.4 million for the financial year ended 30 June 2024, marking an 18% increase from the previous year. For investors, Pinnacle presents a compelling opportunity with its diversified revenue streams, strong track record of profitability, and focus on expanding its suite of investment offerings. The company’s alignment with high-quality investment managers and its role in facilitating their success position Pinnacle as a noteworthy stock in the financial services sector.

Pinnacle Investment Management Group Ltd has a dividend yield of 2.28% and a dividend cover ratio of 1.5.

Past performance is not an indicator of future returns.

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