A few of the high quality dividend paying stocks, are keenly sought after by passive investors. The two best dividend paying stocks which stand out for their high yield are
Spark New Zealand Limited (ASX: SPK)
Spark New Zealand navigated a difficult economic climate in FY24, as a domestic recession dampened consumer spending, business investment, and heightened competition in mobile and broadband. This led to a 1.2% drop in revenue, a 2.5% decline in EBITDAI to $1.1 billion, and a 21% fall in net profit. A government policy change further impacted results with a one-off $26 million depreciation adjustment. Although growth in mobile services, IoT, and data centers was notable, overall performance fell short of expectations.
To address these challenges, Spark expanded its SPK-26 Operate Programme to drive deeper cost efficiencies across labor, operations, and technology. It is also advancing the divestment of its remaining stake in Connexa, its mobile tower business, as part of a broader review to refocus on core telecommunications and improve balance sheet strength.
While FY24 showed a slight revenue decline, Spark’s long-term financial trend remains stable, with revenue rising from $3.4 billion in FY20 to $3.5 billion in FY23. The company declared a fully imputed dividend of 27.5 cents per share for FY24, maintaining a strong return to shareholders. For FY25, it has lowered its dividend forecast to 25 cents per share with a 75% imputation rate and revised its EBITDAI guidance down by 4%, forecasting between $1.12 billion and $1.18 billion.
Spark is prioritizing its data center strategy as a key growth area, holding about 25% of the New Zealand market. With demand driven by 5G and cloud services, it plans to invest in a $1 billion development pipeline, aiming for returns of 10–15%. The company is also seeking capital partners to support this expansion. Despite near-term pressures, Spark remains committed to long-term value creation through its core telecom operations and emerging data center investments.
Super Retail Group Limited (ASX: SUL)
Super Retail Group Limited (ASX: SUL) reported strong sales performance for the first half of FY25, with total revenue rising 4% to $2.1 billion, despite a challenging retail environment, particularly in New Zealand. Like-for-like sales increased 1.8%, and online sales grew 10% to $286 million, making up 14% of total sales. However, gross margin fell by 70 basis points to 45.6% due to inflationary pressures on wages and occupancy, which impacted profitability.
Statutory net profit after tax declined 9% to $129.8 million, with earnings per share at 57.5 cents. The company declared a fully franked interim dividend of 32 cents per share, consistent with its payout policy. Financially, the group remains strong, reporting no bank debt and holding $168 million in cash.
Performance varied across brands. Supercheap Auto grew sales by 1.7% to $774 million, though like-for-like sales slipped slightly, weighed down by a 3.5% drop in New Zealand. Rebel achieved a 4.4% sales increase to $706 million, led by demand in footwear and licensed apparel, though its margin dropped due to higher stock losses and a shift to lower-margin products. BCF was the standout, posting 6.9% growth to $518 million, driven by strong demand in camping and water sports. Macpac sales rose 1.7% to $107 million, with gains in Australia offset by declines in New Zealand.
The company is advancing its new Victorian distribution centre, set to begin phased operations in H2 FY25. The new facility is expected to enhance operational efficiency, reduce costs, and support scalable growth.
(Source: Company Announcements)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
