Building a portfolio to generate steady income stream is easier said than done. While naïve investors look for just income, astute ones aim to generate wealth simultaneously along with a regular passive income.
Best 5 ASX stocks for passive income
Helia Group Limited (ASX: HLI)
Spark New Zealand Limited (ASX: SPK)
Pepper Money Limited (ASX: PPM)
New Hope Corporation (ASX: NHC)
WAM Capital Limited (ASX: WAM)
Helia Group Limited (ASX: HLI)
came out with solid 1H FY2025 results. It posted a statutory NPAT of A$133.7 million which is up from A$97.0 million in 1H FY2024.The underlying NPAT was A$126.1 million. Insurance revenue reached A$182.2 million helped by better than expected claims and gross written premium jumped 28% compared to the same period last year. Shareholders are set to receive a interim dividend of 43cps which includes 16cps fully franked and 27cps as a special dividend. This comes to about 19.2% annual yield. The ex dividend date is 29 August 2025 and payment will be on 16 September 2025. For the rest of FY25 Helia is guiding insurance revenue between A$350–390 million supported by housing market growth.
Spark New Zealand Limited (ASX: SPK)
posted revenue of NZ$3.7 billion in FY2025 which was 2.5% lower than last year. Its adjusted EBITDA came in at NZ$1.06 billion while NPAT was NZ$260 million. FCF stayed steady at around NZ$330 million helped by lower capex of NZ$429 million and cost savings of NZ$85 million. The balance sheet improved a lot with NZ$356 million from asset sales and also a deal to sell 75% stake in its data centres which is valued at NZ$705 million. Shareholders will get a final dividend of NZ$0.141 per share taking total FY25 dividend to 25cps which means 9.75% annual yield and Ex dividend date is on 9 September 2025 and payment will be on 3 October 2025.
Pepper Money Limited (ASX: PPM)
posted good 1H FY2025 results. It made NPAT of about A$47 million which is 2% higher than last year and profit before tax and loan loss expense came in at A$109.2 million. The operating income was A$185 million and this was helped by record loan originations of A$4.5 billion. Total AUM also went up to A$20.1 billion. Asset Finance business rose 11% to A$6.3 billion and this shows the company has a wide earning base. Shareholders are getting interim dividend of 6.4cps fully franked which is 11.8% yield. Ex dividend date is 11 Sept 2025 and payment date is 10 Oct 2025.
New Hope Corporation (ASX: NHC)
had a strong FY2025 with run of mine coal production going up 33% to 16.4Mt and saleable coal rising 18% to 10.7Mt mainly because of New Acland performing well. The company posted an underlying EBITDA of A$765.8 million and operating cashflow of A$570.8 million while holding A$707.3 million in cash as of 31 July 2025. During the quarter there was A$1.5 million was spent for the group’s exploration activities. Shareholders have gotten consistent dividends over time with an annual yield equating to 9.2% yield. For the future NHC looks in a good position with forward sales locked in and strong pricing deals and a pipeline led by New Acland stage 3.
WAM Capital Limited (ASX: WAM)
had another solid year in FY25 with its portfolio going up 22.2% which is 9% better than the S&P/ASX All Ordinaries Index. The company posted an operating profit before tax of about A$304 million and NPAT came at A$219.6 million. Net tangible assets per share also increased to A$1.57 pre tax. The board announced a final dividend of 7.7 cps that was partly franked and this makes the full year dividend 15.5 cps which is around 8.7% Annual yield. Important dates are ex dividend date on 20 October 2025 and payment on 31 October 2025. Going forward WAM is confident about keeping high distributions as it has strong profit reserves and small cap outperformance is still helping.
(Source: Company Announcements)
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