From ASX listed companies, following stocks are best suited in the current environment for passive income seekers. Among good quality dividend stocks, the following can be added during the current month.
Helia Group Ltd (ASX: HLI)
Helia Group Ltd (ASX: HLI), on 24 March 2025 announced updates regarding its relationship with the Commonwealth Bank of Australia (CBA). The company disclosed that CBA had entered into exclusive negotiations with an alternative provider for Lenders Mortgage Insurance (LMI) services, potentially ending their longstanding partnership by December 2025. This shift may lead to a reduction in Helia's Gross Written Premium (GWP) as CBA moves to another LMI provider. The transition will impact Helia gradually, with an estimated decline in GWP starting from FY26, but the company anticipates continuing profitability through other partnerships.
In FY24, the company earned a net profit of $231.5 million after paying taxes. The underlying NPAT was slightly lower than the previous year due to a decrease in the benefits from claims experience. The company is among the highest paying dividend stocks, having previously announced an increased dividend payout, reflecting its robust financial position. Shareholders were entitled to receive a fully franked final ordinary dividend of 16.0 cents per share and a fully franked special dividend of 53.0 cents per share. The total payout, along with on-market share buyback program, indicators Helia's strong capital management approach, representing its commitment to returning value to shareholders.
For FY25, the company offered a revenue guidance of between $310 million and $390 million in insurance revenue. The company anticipates its claims ratio to be below long-term expectations, reflecting stable financial performance regardless of possible changes in its customer base. The company also intends to continue its capital management approach with additional share buybacks and a stable dividend policy.
Waypoint REIT (ASX: WPR)
For FY24, Waypoint REIT (ASX: WPR) achieved a Distributable Earnings per Security (DEPS) of 16.48 cents, maintaining this figure for the third consecutive year despite the challenges posed by rising interest rates. The company's net profit for 2024 was $131.5 million, a big turnaround from the previous year when it had a loss of $79.1 million. The increase in net asset value per security was 1.1%, bringing it to $2.76, and the management expense ratio remained one of the lowest in the S&P/ASX 200 REIT Index. Waypoint REIT’s final distribution for the December quarter was 4.12 cents per security, with a current dividend yield of 6.66%.
For FY25, the company expects to maintain its DEPS guidance of 16.48 cents per security. It is one of the best long term dividend stocks. The company’s focus remains on its ongoing engagement with Viva Energy Australia regarding the conversion of its fuel and convenience sites to the "On The Run" (OTR) format. Though discussions are still in the early stages, Waypoint REIT is open to funding some conversions of its own sites, provided mutually agreeable terms can be reached. The company also plans to continue capital management efforts, including the potential sale of non-core assets and a refined capital structure. Liquidity of approximately $150 million, combined with gearing at the lower end of the target range, positions Waypoint REIT to explore growth opportunities.
The firm is using its solid liquidity position and favorable market conditions to maximize shareholder value. An on-market buyback program has been declared, enabling the repurchase of up to $50 million of securities. The buyback will be accretive to both Distributable EPS and NTA per security, and the firm believes that the current market price of its securities does not adequately reflect the underlying value of its portfolio.
(Source: Company Reports)
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