A retiree, invariably prefers to have high quality dividend paying stocks in its portfolio. The choice then narrows down to highest paying dividend stocks with a long term track record. Two such growing companies to invest in are
Super Retail Group Limited (ASX: SUL)
Super Retail Group Limited (ASX: SUL) is executing strategic upgrades, such as a new payroll system and Human Resources Information Management system, which will be developed over the next 12 months. The business is also handling duplicated operational expenses as it transitions to a new Victorian distribution centre. For FY25, this segment is expected to incur $42 million in costs, up from $36M in FY24. Costs from the payroll project and distribution centre transition are likely to total $29M by FY26.
The Group maintains a set of leading brands across the auto, sports and outdoor leisure categories. These sectors are supported by long term consumer trends such as increased focus on health and personal wellbeing. Centralised systems and scale allow Super Retail Group to reduce costs and improve efficiency across its operations. SUL maintains a strong physical presence across Australia and New Zealand and continues to benefit from its cash generative model.
Sales have grown by 4.2% in FY25 to date with stronger like-for-like sales performance in the second half. Margins remain lower YOY, similar to the first half. Macpac has seen slower performance due to its exposure to New Zealand while BCF gained from inventory strategies and seasonal demand. Key initiatives focus on digital enhancements, a semi-automated Victorian distribution centre and store network expansion. Upgrades to store formats, superstore rollout and regional expansion are being prioritised to improve return on invested capital and meet evolving consumer preferences.
McMillan Shakespeare Ltd (ASX: MMS)
McMillan Shakespeare Limited (ASX: MMS), on 27 February 2025 shared its financial results for the half year ended 31 December 2024 (1HFY25). MMS achieved a Statutory NPAT of $45.2 million, an increase of 3.4% from the previous corresponding period. Normalised UNPATA was $49.6 million, down 6.7% and normalised revenue rose 2.4% to $267.4 million. EBITDA declined 7.1 percent to $80.8 million due to higher investments and $4.4M in non-recurring costs. Also, MMS declared a fully franked interim dividend of 71 cps. Normalised earnings per share reached 71.3 cents and Return on Capital Employed stood at 61.7%.
GRS (Group Remuneration Services) achieved normalised revenue of $143.7 million, up 0.7%. The PSS segment recorded $27.8 million in revenue, a 6.0% rise with EBITDA up 19.7% following a 10.1% increase in customer numbers. AMS revenue raised 2.4% to $92.3 million while its Written Down Value rose 8.8%, aiding customer fleet renewals. The rollout of the novated leasing brand Oly expanded to 312 new employers.
The Simply Stronger program remains on schedule, aimed at enhancing digital experience, productivity and solution offerings with greater benefit realisation expected in the second half. For 2HFY25, MMS forecasts higher Normalised UNPATA than 1HFY25 due to increased novated sales, order momentum, new client wins, operational efficiencies and lower non-recurring costs.
(Source: Company Announcements)
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