Passive investors hunting for quality high yield dividend stocks keep one thing foremost in their strategy. Consistency. Two ASX best long term dividend stocks are
APA Group (ASX: APA)
APA Group delivered another year of robust financial and operational performance in FY24, underscoring its critical role in providing reliable, affordable, and lower-emissions energy solutions for Australia. Among potential growth companies, it achieved revenue, earnings, and distribution growth, marking the 20th consecutive year of distribution increases for investors. APA declared a final distribution of 29.5 cents, bringing the FY24 total to 56 cents per security, a 1.8% increase year-over-year and in line with guidance. For FY25, APA has provided guidance of 57 cents per security, representing another 1.8% increase, alongside reaffirmed underlying EBITDA guidance of $1.96–$2.02 billion. One of the best quality dividend stocks, its dividend yield stands at 7.66%, supported by the company's consistent payout throughout years.
Revenue (excluding pass-through) increased by 7.9% to $2.59 billion, while statutory profit surged to $998 million, boosted by the remeasurement of APA's 88.2% stake in the Goldfields Gas Pipeline as it assumed full ownership. Despite a non-cash impairment of $144 million related to the Moomba Sydney Ethane Pipeline, underlying EBITDA grew by 9.7% to $1.89 billion, with reported EBITDA rising 3.0% to $1.73 billion. APA also invested $833 million in organic growth projects and successfully refinanced $2.2 billion in debt, pushing maturities out to March 2027.
Key growth platforms include contracted power generation, electricity and gas transmission, storage, and future fuels. Notable milestones in FY24 include the acquisition and integration of the Pilbara Energy business and the Basslink interconnector, both performing as per expectations. The $90 billion addressable market across APA's focus areas presents significant growth opportunities, exemplified by the CS Energy pipeline and storage project in Queensland. The Pilbara acquisition has emerged as a strategic lever, enabling APA to expand its footprint in lower-emissions infrastructure.
The company’s clear ambition to be Australia’s partner of choice for energy infrastructure underpins its strategic reset. APA remains committed to disciplined capital allocation, operational efficiency, and customer-centric solutions. With no near-term debt maturities and substantial organic growth potential, APA is well-positioned to sustain strong returns for securityholders while aligning with Australia’s energy transition. Looking ahead, APA's strategy, robust balance sheet, and execution capabilities provide a compelling investment case, reinforcing its role as a leader in securing Australia’s energy future.
Rural Funds Group (ASX: RFF)
Rural Funds Group (ASX: RFF) reported solid financial performance for FY24, with property revenue increasing by 8.0%, or $6.5 million, to $88.4 million. This growth was primarily driven by the ongoing development of macadamia orchards, which are expected to contribute significantly to future revenue. The Group also saw a 7.2% rise in its adjusted net asset value (NAV), reaching $3.14 per unit, mainly due to independent property valuations conducted on 69% of its assets. Earnings for the year amounted to $117.2 million, or 30.3 cents per unit (cpu), while adjusted funds from operations (AFFO) grew by 2.8% to 11.0 cents per unit. Distributions to unitholders were maintained at 11.73 cents per unit, in line with forecasts. Additionally, Rural Funds Group continues to pay a consistent dividend, with a current dividend yield of 6.72%. The latest distribution, announced on 2 December 2024, is AUD 0.029325 per unit, with a record date of 31 December 2024 and payment date of 31 January 2025.
Rural Funds Group is forecasting a 3.6% increase in AFFO for FY25, to 11.4 cents per unit, with distributions expected to remain at 11.73 cents per unit. The Group’s strategic focus remains on continuing the development of its macadamia orchards, which began in 2021 and are on track for completion by the end of 2024, despite some weather-related delays. These orchards, leased to a global institutional investor, are projected to generate 18% of FY25’s total revenue, and this share is expected to grow as further capital is deployed into the development.
The Group’s portfolio remains well-diversified, with 67 properties across five agricultural sectors and multiple climatic zones. The properties are largely leased to high-quality corporate and institutional lessees, with about 80% of FY25 forecast income coming from such tenants. The lease structure is predominantly triple-net, and most leases have long durations with inflation-linked rental growth. Rural Funds Group also has a strong development and leasing pipeline, focusing on productivity improvements and converting properties to higher and better uses. This strategic approach aims to enhance earnings and further strengthen the risk profile of the portfolio.
Source: Company’s Report
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