While ASX boasts of many high dividend stocks, a few stand out because of their consistency and growth potential. Two such best quality dividend stocks are
SG Fleet Group Limited (ASX: SGF)
SG Fleet Group Limited (ASX: SGF) maintained strong operational and financial momentum throughout FY2024, delivering robust results across its core Corporate and Novated divisions. Funded new deliveries increased by 38.2%, driving a 6.8% growth in the funded fleet. Although the order pipeline has begun to normalize, demand remains above historical levels, supported by resilient used vehicle values and improved supply conditions. The company anticipates a more stable environment in FY2025, with used vehicle prices expected to remain above pre-COVID norms. Revenue for FY2024 rose 11.4% to $390.1 million, driven by a 44% increase in net rental and finance income, 10.2% growth in mobility services revenue, and a 22.6% surge in additional products and services revenue. Net profit after tax (NPAT) grew 6.7% to $89.7 million, while underlying NPAT rose 19.2%. Operating income outpaced expense growth, delivering a 6.8% increase in earnings per share (EPS) to 26.23 cents. Strong delivery volumes, inflation tailwinds, and reduced depreciation supported the performance.
SG Fleet’s Corporate channel capitalized on structural trends like increased outsourcing and strong sale-and-leaseback demand, while Novated leasing gained traction with growing interest in EVs and PHEVs, supported by tax incentives. Regional performance remained solid, with Australia benefitting from stable corporate confidence and New Zealand performing well in government and cross-border arrangements. The UK saw post-election recovery, with stable demand for low- and zero-emission vehicles. The company declared a total dividend of 33.93 cents per share in FY2024, a 109.6% increase YoY, including a fully franked special dividend of 15 cents per share. Management has also outlined a progressive dividend policy, with forecasted payouts expected to grow consistently through FY2028, making SG Fleet an attractive option for income-focused investors.
Looking ahead, SG Fleet is considered among high growth stocks as it expects FY2025 underlying NPATA of $88–$95 million, supported by improving supply chains, higher vehicle deliveries, and ongoing synergies from LeasePlan integration. While rising interest costs and technology investment may pose challenges, the company remains well-positioned for sustained growth and shareholder value creation.
McMillan Shakespeare Limited (ASX: MMS)
McMillan Shakespeare Limited (ASX: MMS) reported strong financial results for FY24, reflecting organic growth across all its business segments. The company saw an 11.5% increase in Normalised revenue, reaching $525.8 million, while Normalised EBITDA grew by 34.8% to $177.0 million. Normalised UNPATA surged by 38.2% to $107.6 million, with a notable 42.9% rise in Normalised earnings per share (EPS) to 154.5 cents. MMS maintained a strong capital-light model, highlighted by a 136% cash conversion rate and a return on capital employed (ROCE) of 62.1%. The company is among ASX best long term dividend stocks having delivered a full-year fully franked dividend of 154 cents per share, up 24.2%, aligning with its payout policy of distributing between 70-100% of Normalised UNPATA.
The company remains committed to sustainability, demonstrating progress in reducing its carbon footprint. In FY24, MMS achieved a 19% reduction in net greenhouse gas emissions, with all office sites now powered by 100% renewable electricity. MMS continues to support the adoption of low and zero-emission vehicles, achieving a 10% reduction in tailpipe emissions for its Group Remuneration Services (GRS) and Asset Management Services (AMS) fleets. The company’s efforts have been recognized with an upgraded ESG rating from A to AA. Furthermore, MMS is dedicated to improving lives through initiatives like its partnership with Jigsaw Australia to support the employment of individuals with disabilities.
MMS expects continued inflationary pressures, cost-of-living challenges, and pricing competition in FY25. The company anticipates a reduction in new vehicle delivery times, which is likely to drive growth in novated leases. The expiration of the FBT benefit for plug-in hybrids in April 2025 may impact some customers, but the benefit for battery EVs will remain in place. MMS plans to complete its Simply Stronger program in FY25, with a capital expenditure of $11 million, focused on enhancing digital customer solutions, improving self-service capabilities, and progressing technology modernization.
Source: Company’s Report
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