Out of ASX listed companies, there are certain high dividend stocks with potential for growth in the long term.
GR Engineering Services Limited (ASX: GNG)
GR Engineering Services Limited (ASX: GNG) reported FY24 revenue of $424.1m (vs. $551.4m in FY23) and EBITDA of $50.9m (up from $44.4m), reflecting strong operational performance despite a lower revenue base. Key project completions included the Thunderbird Mineral Sands Project, Bellevue Gold Project, and Cosmos Nickel Concentrator Facility Upgrade. GR Production Services maintained critical contracts with Santos, INPEX, and Eni, while Mipac and Paradigm delivered for major repeat clients, including BHP, Rio Tinto, and Glencore Technology. The FY24 Group Total Reportable Injury Frequency Rate stood at 2.11, with one LTI recorded. One of the high quality dividend paying stocks, it declared a fully franked dividend of 10.0 cps, bringing total FY24 dividends to 19.0 cps, and the dividend yield being 7.57%, consistent with recent years. GR Engineering's shareholder base expanded significantly, growing 35% YoY to 4,787 as of 30 June 2024. The company maintains a robust balance sheet, with a $74.6m cash position and negligible external debt.
The strategic acquisition of Paradigm in March 2024 has bolstered the Group's automation, control systems, and engineering services capabilities. This acquisition strengthens GR Engineering’s footprint in Western Australia and enhances service offerings to Tier 1 clients, including Anglo American and First Quantum Minerals. Looking forward, GR Engineering is actively engaged in 24 studies spanning diverse commodities and geographies and has a strong pipeline of tenders and contracted work. Revenue for FY25 is forecasted between $425m and $450m, largely supported by a well-established order book and a revenue weighting towards H1 FY25.
The Group continues to explore strategic growth opportunities to enhance scale, diversity, and technical expertise while targeting annuity-style energy contracts for longer-term stability. GR Engineering’s financial position and operational capacity position it to capitalize on its robust pipeline and pursue value-accretive opportunities. In summary, GR Engineering's disciplined execution, strategic acquisitions, and solid order book support sustainable growth and consistent shareholder returns.
IPH Limited (ASX: IPH)
In FY24, IPH Limited (ASX: IPH) delivered strong financial results despite challenging market conditions. Revenue increased by 22.9% to $609.9 million, while underlying EBITDA rose by 15.0% to $195.5 million.
The company's underlying NPATA grew 13.5% to $112.4 million, and underlying EPS lifted by 5.6% to 46.0 cents, marking the third consecutive year of growth. It is among the best dividend paying stocks, with dividends per share growing by 6.1% to 35.0 cents, continuing a consistent upward trend since the company's listing in 2014. Organic growth in Australia and New Zealand, along with contributions from recent acquisitions in Canada, were key drivers of this performance.
IPH’s strategic focus on expanding its global presence through acquisitions continued in FY24, particularly in Canada, which is now its second-largest market. The company successfully integrated Ridout & Maybee, ROBIC, and Bereskin & Parr into its Canadian operations, building a market-leading position in this key IP market. These acquisitions, alongside the initial purchase of Smart & Biggar in 2022, have helped strengthen IPH’s global footprint and diversified its earnings base. In Canada, the business achieved strong organic growth, with a like-for-like revenue increase of 8%, and the Canadian segment contributed nearly $200 million in revenue during FY24.
IPH remains focused on organic growth, particularly through synergies from its recent acquisitions. The company is leveraging its expanded global platform to capture cost efficiencies and drive new business opportunities across its network. While the Asian market faced challenges with lower filings, particularly in Singapore, the company expects recovery to continue into FY25. In the first quarter of FY25, IPH saw an increase in revenue, driven by its Canadian and Australian businesses, though underlying EBITDA was slightly impacted by a stronger Australian dollar. Despite these challenges, the company remains confident in its ability to drive long-term growth and further enhance shareholder value.
Source: Company’s Report
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