From ASX listed companies, few stocks can be strong candidates for investors seeking consistent passive returns. Following stocks emerge as high quality dividend paying stocks for such a consideration.
Telstra Group Limited (ASX: TLS)
This top ASX stock in telecommunications sector, the sector likely to play a vital role in country’s future prosperity. Telstra Group Limited (ASX: TLS), already among dividend paying companies, has maintained growth in H1 FY25.
Telstra (ASX: TLS) remains a dominant force in Australia's telecommunications industry, despite facing growing competition. Aussie Broadband (ABB) is gaining ground in the retail broadband space by offering competitive pricing and strong service, capitalizing on its agility compared to larger providers. Meanwhile, Macquarie Telecom (ASX: MAQ) targets enterprise and government clients, specializing in secure cloud, hosting, and managed services—appealing to sectors with high compliance demands. These competitors challenge Telstra on different fronts: consumer agility and enterprise specialization.
Despite this, Telstra, one of the best long term dividend stocks continues to be an attractive investment due to its consistent financial performance, strong dividend yield, and forward-looking strategies, including infrastructure upgrades. The recent A$750 million share buyback further underscores its financial confidence and commitment to shareholder value, reinforcing its strong position for long-term growth.
GR Engineering Services Limited (ASX: GNG)
GR Engineering continues to perform strongly across both domestic and international projects. In H1 FY25, the company executed 25 engineering studies and had 30 more in progress backed by a strong pipeline of work across industries like mining, energy, and water has allowed them to maintain a steady growth.
GR Engineering Services Limited recently reported strong HY25 results, with revenue rising to $272.1 million and EBITDA reaching $34.5 million, supported by stable margins and high project execution levels expected to continue through FY25 and FY26. Operating cash flow was robust at $56.1 million, contributing to a healthy cash balance of $111.8 million as of 31 December 2024.
Between FY2020 and FY2024, the company experienced significant growth, with revenue peaking at $651.7 million in 2022 before moderating to $424.1 million in 2024. Profitability also improved, with EBITDA rising from a loss of $7.7 million in 2020 to $51.13 million in 2024. Net income before extraordinary items reached $31.18 million in 2024, up from a loss of $7.25 million in 2020.
GR Engineering also strengthened its financial position over this period, with cash and investments rising and total assets more than doubling to $226.8 million by 2024. The company is among high dividend stocks, maintained low debt levels and increased common equity to $66.33 million, underscoring its consistent growth, strong balance sheet, and commitment to creating shareholder value.
(source - company announcements)
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