When the markets are so volatile amid ongoing global trade tensions, investors should add comparatively top quality dividend stocks to their portfolio.
Servcorp Ltd (ASX: SRV)
Servcorp Ltd (ASX: SRV), on 19 February 2025 announced strong financial results for the first half of FY2025 and by virtue of being one of the best long term dividend stocks, is continuing its commitment to rewarding shareholders through its dividend policy.
The company attained an underlying net profit before non-cash impairments and tax of $34.4 million, a 19% increase compared to the same period last year. Underlying operating profit was $32.8 million, and free cash flow rose by 13% to $40.5 million. These results are an image of Servcorp's efficient operations and focus on growth. The company, among high quality dividend paying stocks, declared an interim dividend of 14.0 cents per share, 10% franked. The company also projected that its total dividend for FY2025 would be no lower than 28.0 cents per share, indicating a high level of promise to returning value to shareholders.
The company has reaffirmed its full-year guidance, anticipating underlying NPBIT of $61.0 million to $65.0 million, with underlying free cash of over $75.0 million. This positive outlook is attributed to the expansion and technological advancements in the company. The company is actively investing in growth through the development of a new global booking system, enhanced check-in processes with facial recognition, and AI-driven solutions to improve productivity and client experience.
The business is continuing to expand its international presence. In the first half of FY2025, the company launched three new centers, including in Australia, New Zealand, and the Middle East. Further growth is expected, with five new floors scheduled to open in the next year across South East Asia and the Middle East. These efforts align with Servcorp's long-term policy to meet increasing demand for flexible and high-end office spaces in prime locations worldwide.
Rural Funds Group (ASX: RFF)
Rural Funds Group (ASX: RFF), on 21 February 2025 declared strong results for the first half of the 2025 financial year.
Net property income increased by 17.3% to $45.5 million, mainly due to additional rental income from macadamia developments. The group achieved adjusted funds from operations of 5.73 cents per unit, meeting full-year forecasts, and declared a distribution per unit of 5.87 cents. The adjusted net asset value decreased by 1.2%, due to the revaluation of interest rate swaps. The group confirmed its full-year FY25 forecasts, which include an AFFO of 11.4 cents per unit and a distribution of 11.73 cents per unit.
The Rural Funds Group’s portfolio remains well-expanded across five agricultural sectors, with a total property value of $1.93 billion. It has 64 properties spread across multiple climatic zones, with a long weighted average lease expiry of 13.0 years. The group continued leasing activity, securing leases for eight properties valued at $119 million, including cropping properties leased to TRG JV, vineyards to Treasury Wine Estates, and a cattle property to a private farming enterprise. Independent rent reviews resulted in a 34% increase in rent for three cattle properties. These developments align with the group’s strategy to actively manage its assets, improving productivity and converting them into higher-value uses.
The group is on path to meet its FY25 forecasts. Key priorities include progressing the development of macadamia orchards and other agricultural properties while reducing gearing through planned asset sales to achieve a target debt-to-equity ratio of 30-35%. The full-year distribution forecast for FY25 is confirmed at 11.73 cents per unit, with the same forecast for FY26.
(Source: Company Announcements)
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