With interest rates touching rock bottom and likely to fall further, the passive income investors are switching their cash investments to upcoming dividend stocks. Under the prevailing low rate environment,
Best Upcoming Companies to invest in are
Bank of Queensland (ASX: BOQ)
Annual dividend yield 4.85%
Dividend Pay date 19 November 2024
Dividend amount per share $0.17
Franking 100%
Dividend ex date 25.10.2024
Market cap $4.63 B
Share price $7.010 as of 18 october 2024
Bank of Queensland reported statutory net profit after tax of $285 million for FY24, alongside cash earnings of $343 million. While total income decreased by 8% year-over-year, driven by pressures in home lending and margin contraction in a competitive environment, the bank's strategic focus on portfolio realignment and business growth is beginning to yield results. BOQ made a strategic shift to recycle lower-returning home lending capital towards higher-yielding assets in the business banking sector. This pivot has contributed to a return to growth in 2H24, particularly in specialized segments where BOQ maintains a competitive advantage. Net interest margin (NIM) for FY24 was 1.56%, a 13-basis point decrease from FY23, though NIM stabilized after the decline experienced in 2H23.
Customer deposit balances increased by 1%, driven by a $1.5 billion rise in digital deposits, underpinned by BOQ’s continued investment in digital platforms. Currently, 26% of retail deposit customers are on the bank's digital platform, highlighting the progress of its digitization efforts. The bank's liquidity position remains strong, as evidenced by the repayment of the final $1.1 billion of the RBA’s term funding facility during 2H24.
Capital ratios remain robust, with the CET1 ratio at 10.66%, reflecting prudent capital management, including the redemption of $350 million in BOQPE Additional Tier 1 Capital Notes in August 2024. BOQ's portfolio quality remains solid, with low loan impairment expenses and prudent provisioning coverage. The bank declared a final fully franked dividend of 17 cents per share, representing a payout ratio of 65.7% of 2H24 cash earnings, to be funded via an open-market purchase of shares through its dividend reinvestment plan. BOQ is leveraging its strengths in business banking, particularly in specialized segments, to drive growth and enhance returns. Its ongoing efforts to simplify distribution channels, optimize its branch network, and focus on higher-margin products position the bank well for future growth amid a competitive market.
WAM Capital (ASX: WAM)
Annual dividend yield 9.62%
Dividend Pay date 31 October 2024
Dividend amount per share $0.077
Franking 60%
Dividend ex date 21.10. 2024
Market cap $1.79 B
Share price $1.62 as of 18 october 2024
WAM Capital discovers growingly stronger and more attractive undervalued growth prospects in the Australian market. As of September 2024, the company reported a notable net tangible asset (NTA) figure, which will be adjusted after the final dividend of 7.75 cents per share, partially franked at 60% payable on October 31, 2024. The shares go ex-dividend on October 21, 2024. The September NTA reflects a tax payment of $502,000 and includes a favorable tax asset position of 11.69 cents per share, bolstered by both the acquisition of investment companies and available income tax losses for future periods.
The investment portfolio performed well in September, surpassing the S&P/ASX All Ordinaries Accumulation Index, with notable contributions from telecommunications company Tuas (ASX: TUA) and aged care provider Regis Healthcare (ASX: REG). Tuas exceeded market expectations with robust subscription growth, while Regis benefited from government support and the strategic acquisition of new facilities, positively impacting overall performance. WAM Capital with upcoming dividends has consistent track record which includes a full-year dividend of 15.5 cents per share, with a grossed-up dividend yield of 12.1%, illustrating its commitment to delivering returns to shareholders.
WAM Capital investment is based on comprehensive research into undervalued growth companies focused on free cash flow and return on equity. The firm has successfully navigated the market for over 25 years, managing a diversified portfolio across eight listed investment companies.
Acrow Limited (ASX: ACF)
Annual dividend yield 5.44%
Dividend Pay date 29 November 2024
Dividend amount per share $0.030
Franking 100%
Dividend ex date 30.10.2024
Market cap $327.72M
Share price $1.080 as of 18 october 2024
Acrow Limited (ASX: ACF) announced the successful expansion of its debt facility with Westpac, boosting its financial position and supporting its strategic growth ambitions. The facility increased by $56 million to approximately $150 million, providing additional headroom of around $75 million. This increased capacity strengthens Acrow’s balance sheet, enabling the company to pursue non-dilutive, small to medium-sized acquisitions in line with its acquisition growth strategy. Additionally, Acrow secured hire contract wins for Q1 FY25 worth $24.8 million, a 51% increase compared to the previous corresponding period, marking a record quarter for the company. These results, a leading indicator of future performance, highlight a strong medium-term outlook for the business. Acrow's focus remains on expanding its Industrial Access business nationally through both organic growth and strategic acquisitions. Acrow reported group revenue growth of 28% year-over-year to $215.3 million, driven by strong organic growth, with the Formwork division up 19% and Industrial Services division surging 78%. The Industrial Services division, which now represents 33% of group revenue, continues to enhance the company’s recurring revenue base. The acquisitions of MI Scaffold and Benchmark Scaffold contributed eight months and four months of revenue, respectively, supporting this growth.
Group sales reached $133.8 million, up 28%, with 71% of this uplift stemming from increased equipment hire. Margins across all divisions improved, with the group’s gross margin steady at 62.1%, largely due to the increased contribution from Industrial Services. Underlying EBITDA rose 40% to $74.6 million, with EBITDA margin expanding by 3.1 percentage points to 34.7%, reflecting operational scale benefits. Despite a higher effective tax rate of 30% (up from 8% in FY23), underlying NPAT grew 8% to $33 million. The company declared a fully franked final dividend of 3.0 cents, up 11% from the prior year.
Looking ahead to FY25, Acrow expects revenue to grow by approximately 20% and EBITDA to see double-digit growth, driven by continued market adoption, cross-selling opportunities, and new product development initiatives.
Source: Company’s Report
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