While dividend stocks are normally from established companies, some of these maintain room for growth. Investors seeking to buy ASX Growth Stocks can benefit from both dividends and capital appreciation in future.
Two best ASX growth stocks to buy now are
BHP Group Limited (ASX: BHP)
BHP Group Ltd reported that it was negotiating a settlement related to the November 2015 failure of the Samarco dam, where BHP and Vale S.A. are holding settlements with the Brazilian authorities, which include federal and state governments and public prosecutors. The goal is that a comprehensive settlement regarding obligations committed by the parties under the Framework Agreement and various civil claims from the authorities will be achieved. As of now, no final agreement has been reached regarding the settlement amount or terms, with negotiations continuing under the oversight of the Brazilian Federal Court and a court-appointed mediator. The proposed settlement could amount to approximately R$170 billion (about US$31.7 billion) to support those impacted by the dam failure.
The settlement is designed to provide comprehensive compensation and support to affected individuals and communities. Eligible individuals and small businesses who participate in the settlement could receive R$30,000, while claims for water damage could yield R$13,000 per person. Additionally, R$8 billion is earmarked for Indigenous Peoples and Traditional Communities, who will have a say in how these funds are used to address collective impacts. The financial structure of the proposal includes R$38 billion paid during remediation since 2016, R$100 billion in future payments, and R$32 billion in performance obligations toward impacted communities and the environment.
In the operational update for the quarter ending September 30, 2024, the company is reporting a strong performance. Production increases are recorded at all their sites, including copper, iron ore, and coal. Copper production rose by 4%, bolstered by higher grades and recovery rates at the Escondida mine. Iron ore output also saw a 3% increase due to successful debottlenecking efforts at the port. The company is seeing a recovery in its steelmaking coal business, with production up by 20%, excluding recently divested mines. BHP announced a joint venture with Lundin Mining to further develop significant copper projects in Argentina, enhancing its copper growth prospects.
One of the best dividend growth stocks, BHP is bullish on the market for copper, which should increase by 70% by 2050 with the full impact of electrification and economic growth. The company is planning an investor site visit to their Chilean copper assets to showcase their growth pipeline. Production guidance for various segments remains steady, with total copper production expected to fall between 1,845 and 2,045 kt for FY25. BHP is among potential growth companies aiming to maintain strong operational performance across its projects, supported by ongoing investments and developments, including the anticipated ramp-up of its Samarco operations and strategic adjustments in its coal production strategies.
Transurban Group (ASX: TCL)
Transurban Queensland Finance Pty Limited, the financing arm of the Transurban Queensland Group, has successfully raised A$250 million through a 10-year senior secured fixed rate medium-term note issuance. The proceeds will be utilized to repay existing debt and cover related transaction costs. Alongside this, Transurban released its FY24 results, showcasing a distribution of 62.0 cents per stapled security, reflecting a 7% growth, in line with prior guidance. Proportional EBITDA rose by 7.5% to $2,631 million, driven by a 6.7% increase in proportional toll revenue to $3,535 million, and EBITDA margin improvement from 72.4% to 73.1%. Operational cost management was effective, with cost growth contained at 3.6%, below inflation. Transurban’s balance sheet remains robust, with approximately $4.2 billion in corporate liquidity, and 88.2% of its debt book hedged, maintaining a weighted average cost of debt at 4.5%. The company, among the high growth stocks, continues to advance its development pipeline, including the West Gate Tunnel Project, on track for completion by late 2025, and the Logan West Upgrade, which has reached the Binding Upgrade Proposal stage.
Traffic growth was steady across all of Transurban's markets, underscoring the company’s focus on stakeholder value creation across government, customers, communities, and investors. Transurban is also working collaboratively with the NSW Government on potential toll reforms aimed at improving customer outcomes while safeguarding the $36 billion investment made by the company and its partners in Sydney over the past two decades. In addition, Transurban has been engaging with the Queensland Government to explore opportunities that will address congestion, enhance travel times, and improve road safety, particularly on the Logan Motorway Project. With more than one million members in its Linkt Rewards program, up fivefold from the prior year, Transurban is also focused on customer growth and retention. Looking ahead, the company expects to deliver a FY25 distribution of 65.0 cents per stapled security, representing a 5% increase over FY24, while maintaining a strong liquidity position to support both current obligations and future growth opportunities.
Source: Company’s Report
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