These shares from ASX listed companies offering good dividend yield are among high quality dividend stocks, ideal for passive income.
Fortescue Limited (ASX: FMG)
Fortescue Limited (ASX: FMG) has reported a strong operational performance for the December 2024 quarter, achieving a record 97.1 million tonnes (Mt) of iron ore shipments for the first half of FY25. This reflects a 3% increase over the previous year and marks the highest half-year shipments in the company’s history. The company continued to improve its safety record with a Total Recordable Injury Frequency Rate (TRIFR) of 1.0, a 44% decrease from the previous year. Key cost reductions were also noted, with the Hematite C1 cost falling by 10% to US$18.24 per wet metric tonne (wmt), driven by higher mining volumes and favorable exchange rates. Fortescue is on track to meet its FY25 guidance of 190-200Mt in shipments.
Fortescue has continued to advance its decarbonization efforts, progressing towards a zero-emission mining fleet with a contract to purchase over 100 pieces of heavy mobile equipment from Chinese manufacturer XCMG. Additionally, the company is advancing several green energy projects, including fast-charger technology for electric trucks and feasibility studies for hydrogen projects in Norway and Brazil. The company, one of the best long term dividend stocks, has been paying consistent semi-annual dividends, with the last dividend being 1.2714 AUD gross per share, and a net amount of 0.89 AUD per share, paid on 27th September 2024. The payments have remained stable, reflecting a steady commitment to rewarding shareholders, and are 100% franked.
In exploration, Fortescue has invested US$67 million in Q2 FY25, continuing to focus on its core iron ore assets in the Pilbara and further exploring critical minerals, including projects in Argentina, Peru, and Kazakhstan. The company has also made substantial investments in its energy division, progressing with the development of green technologies and hydrogen production, with federal backing for its fast-charger technology. Fortescue remains focused on meeting its FY25 targets for iron ore shipments, cost management, and capital expenditure, while continuing to make strides in both iron ore and green energy sectors.
APA Group (ASX: APA)
APA Group (ASX: APA) The Australian Energy Regulator (AER) has released a draft decision rejecting APA Group’s proposal to convert Basslink into a regulated Transmission Network Service Provider (TNSP). Despite consumer benefits modelling by ACIL Allen demonstrating an average economic advantage of $1.6 billion under regulation for the period 2025–2050 in 10 out of 12 scenarios, the AER’s initial stance favors maintaining Basslink as a contracted Market Network Service Provider (MNSP). APA will continue consultations and submissions in anticipation of the AER’s final decision but has outlined plans to transition Basslink into a non-contracted MNSP post-2025, leveraging existing systems to bid capacity in the spot market after its Hydro Tasmania contract ends on June 30, 2025. Simultaneously, APA, considered among high dividend stocks, reaffirmed its FY25 distribution guidance, estimating an interim distribution of 27.0 cents per security for H1 FY25, up 1.9% YoY from 26.5 cents per security. Total FY25 distributions are expected to reach 57.0 cents per security, consistent with prior guidance. Final details, including tax deferral and franking credits, will be provided upon release of H1 FY25 results on February 24, 2025.
In a separate development, the AER’s final decision confirmed that the Southwest Queensland Pipeline (SWQP) will remain under the existing light regulation regime. This outcome provides regulatory clarity, enabling APA to accelerate investments in its East Coast Gas Grid. The company plans to optimize compressor infrastructure, expand capacity on current pipelines, and pursue new construction opportunities to address increasing gas demand and enhance energy security. APA’s management anticipates announcing detailed expansion plans in the coming months. Overall, while the AER’s draft decision on Basslink presents a short-term regulatory setback, APA’s ability to adapt its operational strategy and its commitment to maximizing asset value underscore its resilience. Additionally, the AER’s favorable decision on the SWQP reinforces APA’s capacity to drive long-term growth through strategic investments across its gas pipeline network.
Source: Company’s Report
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