When it comes to select top passive income stocks from ASX listed companies, the criteria often revolves around high yield and consistency among dividend paying companies.
Kina Securities Limited (ASX: KSL)
Kina Securities Limited (ASX: KSL) reported Q1 FY24 NPAT of PGK 42.2m, down from PGK 46.4m PCP due to a PGK 7.4m fraud loss provision. Adjusted for this, underlying NPAT grew 7% to PGK 49.6m, driven by a 12% YoY increase in commercial loans (PGK 2.6bn) and strong foreign exchange income, supported by digital channels enhancing fees and commissions. Deposits rose 8% to PGK 4.5bn, led by growth in Cash Management Accounts.
Operating expenses increased 40% to PGK 147.4m (27% excluding fraud), reflecting investments in cybersecurity, recruitment, and inflationary costs. Loan growth was diversified across wholesale/retail (28.3%) and personal banking (+22%), while Funds Management AUM grew 14% to PGK 10.6bn. Kina, one of the best quality dividend stocks, declared an unfranked interim dividend of AUD 4.0cps, highlighting confidence in its strategic growth initiatives, including a new corporate internet banking platform, digital hub expansion, and WLTH partnership leverage. Kina remains well-positioned to drive sustainable growth in PNG’s dynamic financial sector.
Horizon Oil Limited (ASX: HZN)
Horizon Oil Limited (ASX: HZN) has significantly reduced its debt levels and transformed into a highly cash-generative oil and gas company, distributing over AUD 200 million in the past four years. With a well-established management team, Horizon is among the highest paying dividend stocks having maintained shareholder returns while strategically expanding its asset base, most notably with the recent acquisition of the Mereenie asset. This addition enhances production diversity and materially increases reserves, underpinning the company’s long-term growth potential. FY24 results underscore strong execution, with US$71.5 million in EBITDAX from 1.3 million barrels of oil sales and US$54 million in free cash flow. Dividend distributions totaled AUD 3 cents per share, yielding over 15% for the year, a testament to the company’s disciplined approach. Horizon’s production outlook remains robust, supported by its core assets Mereenie, Maari, and Block 22/12 which are expected to sustain output at 4,000–5,000 boepd through 2028. Operationally, Horizon is advancing infill drilling and capacity upgrades across its portfolio, including Block 22/12 and Maari life extension efforts. At Mereenie, two gas infill wells and appraisal of the Stairway Formation highlight potential upside. Horizon remains well-positioned to balance shareholder returns with growth initiatives, delivering value through disciplined capital management.
National Australia Bank Ltd (ASX: NAB)
Over the past five years, National Australia Bank Ltd (ASX: NAB) has strengthened its position with consistent leadership and disciplined execution, navigating challenges like high inflation and the rising cost of living. The bank has maintained its leadership in business lending and improved colleague engagement, with strong operational governance. In FY2024, NAB achieved a return on equity of 11.6%, with a total shareholder return of 51.1% over three years, outperforming most major peers. A modest dividend increase was declared, and $5.2 billion was returned to shareholders through dividends and share buybacks.
Looking ahead, NAB is optimistic about long-term growth despite global risks. It continues to invest in digital technologies, AI, and climate transition efforts. The bank is helping customers reduce emissions, particularly in real estate and transport, and supports agricultural clients in their decarbonisation efforts. NAB is also committed to lending $1 billion to First Nations businesses by 2026, reinforcing its focus on community and sustainability.
Korvest Limited (ASX: KOV)
Korvest Limited, is considered among ASX best long term dividend stocks. It reported a solid financial performance in FY24, with a profit after tax of $11.0 million, marking the third consecutive year of meeting or exceeding this figure. Although revenue slightly declined to $102.9 million, largely due to reduced major project work, the company managed to offset this with improved margins from day-to-day operations. The Galvanising division performed strongly despite stable plant volumes, and external galvanising volumes reached a record high. The business also made a significant $4.5 million investment in capital expenditure to enhance productivity, capabilities, and capacity. This resulted in a higher final dividend, increasing to 40 cents, bringing the total FY24 dividend to 65 cents.
For FY25, the revenue for the first half is expected to be similar to FY24, though margins may be under pressure due to project timing and increased competition. Major project work, particularly in data centers, is anticipated to ramp up as the year progresses, though inflation and competitive forces may weigh on first-half profits.
Westpac Banking Corporation (ASX: WBC)
In 2024, Westpac Banking Corporation (ASX: WBC) delivered a solid financial performance, with net profit of $7 billion and a return on tangible equity of 11%. Despite a 3% profit decline driven by mortgage competition and higher technology costs, the bank maintained stable revenue, with good growth in loans and deposits across key segments. Impairment charges were low at 7 basis points, reflecting strong customer resilience and prudent lending. The bank focused on improving customer service, with initiatives like the award-winning banking app and the introduction of “Pay with Points” for credit card rewards. Strong growth was also seen in Business and Wealth through innovation in payments, such as EFTPOS Air and Flex.
Westpac made significant strides in risk management, completing an Integrated Plan with APRA, which led to the release of $500 million from a capital overlay. Employee engagement rose with the Organizational Health Index improving from 75 to 80. The bank also continued its commitment to regional branches, cash services, and digital banking innovations.
Source: Company’s Report
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