Some stocks of ASX listed companies offer consistent and stable dividends. Two among these high quality dividend paying stocks are
Westpac Banking Corporation (ASX: WBC)
In 2024, Westpac Banking Corporation (ASX: WBC) delivered a solid financial result with a net profit of $7 billion, reflecting a return on tangible equity of 11%. While profits fell by 3% primarily due to increased mortgage competition and higher technology costs, the bank saw flat revenue and good loan and deposit growth across its key segments. Impairment charges were low at 7 basis points of loans, indicating strong customer resilience and prudent lending practices. The bank also focused on improving customer service, achieving strong performance in its Consumer, Business, and Institutional divisions, with innovations like EFTPOS Air and Flex contributing to growth. Westpac is among ASX best long term dividend stocks, as it continues to deliver consistent value to shareholders, with a current dividend yield of 5.13%, reflecting its commitment to regular dividend payments.
The bank’s risk management and simplification initiatives remain key priorities. Over the past four years, Westpac has strengthened its risk culture, achieving a milestone with the completion of its Integrated Plan agreed with the APRA. In 2024, Westpac launched the UNITE program to further simplify operations, improve customer service, and reduce costs. By year-end, 39 out of 61 planned initiatives were underway, aimed at streamlining the bank’s processes. Additionally, the bank made significant progress in digital banking, with a focus on enhancing its institutional and customer-facing platforms, including the Westpac One digital transaction banking platform set to launch its customer pilot in late 2025.
Westpac has also been actively involved in community support, with initiatives to combat scams, offer hardship assistance, and contribute to charitable foundations. The bank’s anti-scam measures, such as SaferPay and Westpac Verify, have prevented millions in fraudulent payments. In response to rising cost-of-living pressures, Westpac provided tailored support packages to over 47,000 customers. Through its charitable foundations, Westpac has contributed over $90 million in the past decade, supporting education, job creation, and emerging leaders.
Eagers Automotive Limited (ASX: APE)
Eagers Automotive Limited (ASX: APE) delivered a strong 1H24 result, with record revenue of $5.5 billion (+13.4% YoY) and record first-half EBITDA growth of 4.6%. However, underlying operating profit before tax softened to $182.5 million (1H23: $207.4 million) due to higher interest rates and inflationary pressures impacting margins. The result was driven by robust performance across the franchised automotive business, recent acquisitions, and the maturing of greenfield ventures. Resilient new vehicle demand, supported by a solid order backlog, and improved results in the independent pre-owned business, easyauto123, underpinned the performance. Meanwhile, the Retail Joint Venture faced inventory clearance impacts but remains positioned for recovery in H2.
Despite macro headwinds, Eagers leveraged its scale and strategic execution to maintain industry-leading productivity. The financial services segment outperformed industry benchmarks in finance income and ancillary product margins, while disciplined cost management counterbalanced inflationary challenges. Eagers continues to reinforce its financial flexibility, with $444.7 million in liquidity as of June 30, 2024, expanding to $797.0 million post refinancing. This robust balance sheet supports ongoing growth initiatives, including $56 million in prime property acquisitions set to close in 2H24, organic and greenfield projects, and accretive M&A opportunities.
APE is one of the high dividend stocks, having reaffirmed its commitment to shareholder returns, with a 6.21% dividend yield and continued investment in proprietary technology to enhance productivity. Looking forward, H2 priorities include expanding the Retail Joint Venture footprint, optimizing recent acquisitions, and capitalizing on the growing demand for battery electric and plug-in hybrid vehicles. While external pressures, including OEM inventory management and weaker consumer sentiment, remain challenges, Eagers is well-positioned for sustainable growth. The Company’s Next100 Strategy, coupled with its diversified brand portfolio, strong market presence, and liquidity, provides a robust platform for long-term value creation. With upside potential in its Retail Joint Venture and independent pre-owned business, Eagers remains a compelling play for investors seeking exposure to Australia’s automotive retail sector amidst ongoing transformation and market recovery.
Source: Company’s Report
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