Although nothing is perfect or guaranteed in stock markets, there are always some dividend paying companies, which provide some assurance backed by their growth and consistency. Two such high quality dividend paying stocks are
ANZ Group Holdings Limited (ASX: ANZ)
ANZ delivered its FY24 results on 8 November 2024, reporting a statutory profit of $6.54 billion, down 8% from last year's record earnings. While challenging global conditions and profitability pressures impacted results, this is still ANZ’s second-highest revenue outcome on record. Cash profit return on equity fell 131 basis points to 9.7%, but ANZ’s cash profit remains its highest since 2017. Total shareholder return reached 27% for the year and an impressive 50% across the past two years. This robust return was supported by a $883 million share buyback, part of an ongoing $2 billion program, which reduced the share count by over 30 million following the sale of ANZ’s stake in AmBank.
ANZ is among high quality dividend paying stocks, having also demonstrated strong balance sheet management, with gross loans and advances totalling $807 billion and customer deposits at $715 billion. A significant development for the year was the acquisition of Suncorp Bank, which boosts ANZ’s scale and reach in the expanding Queensland market. This acquisition, combined with the advancements in ANZ Plus, the bank’s new digital banking platform in Australia, positions ANZ to capitalize on future growth. The bank declared a total dividend of 166 cents per share, reflecting a 5% decrease from 2023. ANZ’s capital position remains solid, allowing it to navigate current economic challenges effectively and pursue further growth initiatives.
In terms of macroeconomic factors, growth has slowed, and while interest rate cuts have begun in many regions, Australia’s central bank is expected to implement an easing cycle starting in 2025 due to persistent inflation. This easing is likely to be moderate and won’t fully offset the steep rate hikes of recent years. However, solid private sector balance sheets suggest that a milder easing cycle could still spur economic activity. Notably, ANZ faces an environment where supply-side pressures such as an aging workforce and housing constraints are intensifying, likely leading to sustained government spending relative to previous cycles. These structural challenges create both risks and opportunities for ANZ, as the bank adapts its lending strategies to support clients amid ongoing supply chain disruptions and demographic shifts. Looking forward, ANZ will continue to focus on its core banking operations, prioritizing customer outcomes, strengthening risk management, and delivering consistent financial returns. With a strong capital position, innovative digital platforms, and a greater presence in key growth markets, ANZ is well-positioned to navigate the evolving economic landscape while creating long-term value for shareholders.
Accent Group Limited (ASX: AX1)
Accent Group Limited (ASX: AX1) is a leading retail and distribution business in the performance and lifestyle sectors, with a focus on digital integration. Ranking high among stocks that pay dividends, in FY24, the company achieved total sales of $1.61 billion and a net profit of $59.5 million, despite challenging market conditions due to a series of interest rate hikes. The group successfully capitalized on its strong brands, maintaining positive sales momentum through strategic investments in customer experience, innovative products, and high service standards. This approach drove both profits and shareholder value, aligning with its long-term objectives.
The company’s performance was supported by a 3% increase in owned sales, totaling $1.43 billion in FY24, driven by continued growth in online sales and an omnichannel strategy. Accent Group expanded its retail footprint, opening 93 new stores while strategically closing 19 underperforming locations. Newer brands like Nude Lucy, Stylerunner, HOKA, and UGG performed well alongside established names like Skechers and The Athlete's Foot. The company also made the decision to exit underperforming stores, such as 17 from the Glue Store business, and to sell the Trybe business, focusing resources on higher-performing units.
The company continues to prioritize customer loyalty, growing its contactable customer base from 9.8 million to 10.2 million in FY24. The company remains committed to providing a best-in-class digital and in-store shopping experience, with an expanding customer base and an efficient omnichannel strategy. With 32 websites, 23 owned and distributed brands, and 895 distribution points, Accent Group is well-positioned to meet the growing demand for digital sales. Loyalty programs and enhanced customer engagement represent two major goals since efforts are being directed toward the optimization of the customer experience with long-term growth. There are also operational efficiency initiatives in place, which can help resolve the pressure on costs as well as performance improvement in the next few years.
Source: Company’s Report
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