Investors have an undying lure for investing in Highest Paying Dividend Stocks as they get passive income from their investments in Dividend Paying Companies.
Most of the investors prefer Best Dividend Paying Stocks for regular dividend returns. However, potential for earnings from regular dividends and capital appreciation constitute the best long term dividend stocks.
Consistency in paying dividends assumes importance as dividends are not guaranteed and are subject to macroeconomic and company-specific risks. Very often, the Stocks that pay dividends off and on get harsh punishment from the market leading to declines in their stock values.
The astute investors, to avoid such pitfalls, always prioritize companies having a history as such companies are invariably more reliable and end up providing steady income to their investors through dividends.
The Best Dividend Stocks ASX are
McMillan Shakespeare Limited (ASX: MMS)
McMillan Shakespeare Limited (ASX: MMS) announced its half-year results for the period ending 31 December 2023 on 20 February 2024.
During this reporting period, the company achieved a normalized revenue from continuing operations of $261.1 million, reflecting an 8.1% increase over the previous corresponding period (pcp).
Normalized earnings before interest, tax, depreciation, and amortization (EBITDA) climbed by 42.9% on pcp to $86.9 million. Additionally, normalized underlying net profit after tax and acquisition amortization (UNPATA) surged by 48.2% on pcp to $53.2 million. The return on capital employed (ROCE) increased by 7.5 percentage points, reaching 46.2%.
Recognised as one of the Top Dividend Paying Stocks, MMS has a track record of being a consistent dividend payer, evidenced by its recent interim fully franked dividend of 76.0 cps, compared to 58.0 cps in the same period last fiscal year.
Projections for MMS's dividend cashflows indicate a notable increase over the forecast period. Starting with 0.34 cps in September 2024, the dividends are expected to witness substantial growth, delivering 0.69 cps by March 2028. This growth trajectory renders a positive outlook for the company's financial performance and highlights its commitment to delivering returns to shareholders.
Kina Securities Limited (ASX: KSL)
In 2023, Kina exhibited a robust performance across its key financial indicators. The net profit before tax (NPBT) surged by nearly 20% to PGK 175.3 million, buoyed by a substantial expansion in the loan book, augmented fees and commissions, and an impressive 200 basis points decrease in the cost-to-income ratio, settling at 54.2%.
Kina Securities Limited has demonstrated strong financial health, consistently maintaining a capital adequacy ratio exceeding 20%, surpassing industry averages. Additionally, its revenue growth has been impressive, with a compound annual growth rate (CAGR) of approximately 18.36% between 2018 and 2022.
Furthermore, the year-on-year drop in the debt percentage of total equity from 16.8% in 2018 to 6.9% by FY22 indicates prudent financial management and a strengthening balance sheet.
Moreover, the average net margins of 29.5% between 2018 and 2022, coupled with growing operating profits, suggest that KSL offers good value. This combination of strong financial metrics indicates that KSL is well-positioned to capitalize on growth opportunities and deliver value to its stakeholders.
Kina Securities Limited remains amongst high dividend stocks
having consistently demonstrated its commitment to providing value to shareholders through regular dividend payouts.
In FY23, KSL announced a final dividend of AUD 6.0 cents per share or PGK 15.9 toea. This final dividend led to a total dividend for the full fiscal year of AUD 10.0 cents per share or PGK 25.6 toea.
KSL anticipates a dividend cash flow of 0.7 cents per share (cps) in September 2024, followed by 1.05 cps in March 2025, and 1.26 cps in March 2026. These consistent dividend projections reinforce KSL's financial stability besides increasing its attractiveness to investors looking for both capital growth and a dependable income stream.
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