Inflation jump quickens rush to buy dividend stocks
With hopes of an immediate rate cut in September abated, passive income seekers in Australia began scouting for good dividend stocks.
Though there are still expectations of some relief coming in monetary policy in November, the scramble for high dividend or stocks increasing their yield continues. The below given stocks offer an opportunity to include these in the portfolio.
Telstra Group Limited (ASX: TLS)
has reported strong results for FY25. It reported statutory profit after tax of $2.34 billion which was up 31% Year on Year and underlying EBITDA of $8.6 billion marking a 4.6% increase. Earnings per share rose 34% to 18.9 cents supported by strong performances in its Mobile, Fixed Consumer & Small Business and InfraCo segments. The Board has decided to pay a fully franked final dividend of 9.5 cents per share, making the total dividend for the year 19 cents (5.6% increase). The company completed a $750 million on-market buy back and announced an additional $1 billion buy back underpinned by disciplined capital management and a strong balance sheet.
Commonwealth Bank of Australia (ASX: CBA)
has also delivered strong results for the 2025 financial year. Its statutory net profit after tax increased by 7% from the previous year to $10.13 billion. This growth was supported by increased lending and stable net interest margins. Cash NPAT rose by 4% to $10.25 billion. Operating expenses grew 6% due to inflation and accelerated technology investments including enhanced GenAI capabilities. The Bank declared a fully franked final dividend of $2.60 per share bringing full-year dividends to $4.85 per share (up 4%.) A $1 billion on market buy back is also underway, with $300 million completed.
Cedar Woods Properties Limited (ASX: CWP)
has reported a strong financial year 2025 with a net profit after tax of $48.1M. NPAT was up 19% year on year which exceeded its 15% growth guidance. Earnings per share rose to 58.4 cents. The company has announced a fully franked final dividend of 19.0 cents per share making the total dividends for the year 29 cents, which is a 16% increase. Presales increased 18% to $660 million and was supported by sustained demand amid easing interest rates and low rental vacancies. Net bank debt was reduced to $125.6 million and gearing remained at 15%. Liquidity remained healthy with $144.2 million in undrawn facilities.
Helia Group Limited (ASX: HLI)
has delivered a solid half year results for the period ending June 2025. Statutory net profit after tax rose by 38% to $133.7 million and underlying NPAT grew by 18% to $126.1 million. Earnings per share also grew by 28% to reach 46.0 cents. The Board has announced a fully franked interim dividend of 16.0 cents (up 7%) and a special unfranked dividend of 27.0 cents. This reflects company's strong capital position and healthy cash flow. Gross written premium increased by 28% and was supported by higher market share and lending volumes.
(Source: Company Announcements)
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