These ASX All Ordinaries stocks that pay dividends are best suited for investors seeking passive income.
Korvest Limited (ASX: KOV)
Korvest Limited (ASX: KOV) reported mixed results for the first half of FY2025, with several challenges impacting performance. The company faced one-off costs totaling $670k, including a 17-day production loss due to a galvanising operational issue and product rectification at its EzyStrut division. Margin contraction was also observed due to competitive pressures in the small project and day-to-day markets, coupled with inflationary cost increases. However, the company’s order book reached a record high, supported by two new major projects secured during the half. These projects are expected to drive significant revenue growth in the second half of the financial year.
Operationally, EzyStrut’s revenue remained flat compared to the previous period, with strong performance in small and day-to-day projects offset by reduced major project activity. Staff costs increased, partly due to salary adjustments and a small increase in headcount to enhance business development efforts. Meanwhile, the galvanising business saw a drop in external tonnes, which was partially offset by stable internal volumes. A key operational issue in November led to a 17-day production halt, impacting performance by approximately $435,000. Despite this setback, the company implemented successful initiatives such as waste heat reclamation to reduce gas consumption, mitigating some of the challenges.
Korvest is one of the high quality dividend stocks remaining optimistic about the second half of FY2025, with a significant increase in major project activity anticipated. The record order book, including two large infrastructure projects, positions the company well for growth in the upcoming months. The company is focused on cost optimisation, automation, and operational improvements, with key initiatives such as a new auto tray line and in-house freight operations. While economic conditions may impact market activity, the outlook remains positive, and the company expects full-year profits to surpass FY2024 levels. A fully franked interim dividend of 25.0 cents per share has been declared, further indicating confidence in the company’s financial health.
AMCIL Limited (ASX: AMH)
AMCIL Ltd (ASX: AMH) reported a solid portfolio performance for the half-year ended 31 December 2024, delivering an 8.7% total return, including franking, outperforming the S&P/ASX 200 Accumulation Index return of 7.6%. Over the full year, AMCIL’s portfolio returned 17.3%, well ahead of the benchmark’s 12.7% gain. Despite this strong portfolio performance, half-year profit declined 12.6% year-on-year to $3.6 million due to the absence of income from the trading and options portfolio, which contributed in the prior period. However, revenue from operating activities rose slightly to $5.0 million, up 1.2% from $4.9 million in the previous year. The company declared an interim dividend of 1.0 cent per share, fully franked at 30%, consistent with last year. Shareholders can participate in the Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (DSSP), with the pricing set at a nil discount to the five-day volume-weighted average price.
AMCIL, among best long term dividend stocks maintains a disciplined investment approach, focusing on high-quality, businesses acquired at attractive valuations. Recent portfolio activity included the addition of Amcor, following its acquisition of Berry Global Group, and Region Group, which offered a compelling dividend yield amid improving operational conditions. The company continues to favor “owner-driver businesses” where management has a significant equity stake, adding Sigma Healthcare, which provides access to the anticipated Chemist Warehouse IPO, alongside EVT and Life360, both acquired at attractive valuations. Further investment was made in WiseTech Global during share price weakness. Key divestments included reducing exposure to Commonwealth Bank, Wesfarmers, and Westpac after their valuations became stretched. Exits from Mineral Resources due to governance concerns and PEXA due to an underwhelming investment thesis also reflected a disciplined capital allocation approach. AMCIL remains cautious on new investments amid elevated market valuations and economic uncertainty. However, the company retains liquidity to act on opportunities and remains confident in the resilience of its portfolio holdings to navigate near-term challenges while delivering attractive long-term returns.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
