Selecting Best Dividend Stocks when the markets are bullish does not involve any rocket science. It is only when the markets start correcting that things go haywire. Consistency, payout ratio and other related metrics taking their own toll.
However, invariably, even when all the sectors are in red there are some stocks defying the trend. Such corrections are a wonderful opportunity to go for bargain hunting when Best Long Term Dividend Stocks are available at a discount.
Ricegrowers Limited (ASX: SGLLV)
Ricegrowers Limited, operating under the name SunRice, announced on 23 July 2024, that it had reached an agreement to purchase the entirety of SavourLife for a total of $20.3 million. This acquisition is intended to bolster the group's CopRice division, facilitating its further expansion into the branded pet food sector.
The SunRice Group achieved a remarkable group revenue of $1.88 billion in FY24, reflecting a substantial increase of 15% compared to FY23. This growth can be attributed to a strong portfolio of brands, an effective product mix, and enhanced operational efficiencies at its plants, all of which contributed to volume growth in FY24. These elements bolstered both the Australian Rice Pool Business and the International Rice segment, enabling the Group to broaden its branded product offerings in the Middle East, facilitate expansion into Europe and the United Kingdom, and engage in additional government tenders, particularly in Japan.
Furthermore, the company reported an EBITDA of $143.9 million, marking a significant rise of 23% from the previous year, while net profit also saw a notable increase of 24% from FY23, culminating in total net profits of $68.2 million for FY24. Operating cash inflows reached $103.4 million in FY24, primarily driven by the strong EBITDA generated throughout the year and a slight decrease in the net working capital balance relative to the previous financial year.
The company is one of the consistent Dividend Paying Companies. It declared a record fully franked total dividend of 60 cents per B Class Share, which includes a final dividend of 40 cents and a special dividend of 5 cents, both fully franked.
Notably, the group repaid all core debt during FY24, delivering the positive financial results for the year, Over the past five years, the company has exhibited a remarkably strong trajectory of financial growth. Specifically, SunRice's revenues have increased from $1.13 billion in 2020 to $1.88 billion in 2024. Concurrently, the company's earnings have experienced substantial growth, rising from $22.6 million to nearly $70 million by 2024
SunRice has established a strong operational foundation that has consistently driven sustainable financial growth for the company. This trend is projected to continue in the upcoming year. The company's recent FY24 financial performance has also been exceptional, resulting in record revenue generation. As of 30 April 2024, SunRice maintained a solid cash position of $32.8 million.
Kina Securities Limited (ASX: KSL)
Kina Securities Limited, in 2023, exhibited a robust performance across its key financial indicators. The net profit before tax (NPBT) increased by about 20% to PGK 175.3 million, bolstered by a significant expansion in the loan book, augmented fees and commissions. Notably, net fees and commissions experienced a notable 18% increase to PGK 137.0 million, attributable to the ongoing development and expansion of Kina’s channel network.
Kina also witnessed significant strides in deposit growth and customer base expansion, with a 19% increase in its deposit customer base and a commendable 12.0% rise in low-cost transactional deposit growth.
KSL is one of the High Dividend Stocks. In FY23, it announced a final dividend of AUD 6.0 cents per share or PGK 15.9 toea. This final dividend resulted in a total dividend for the full fiscal year of AUD 10.0 cents per share or PGK 25.6 toea. KSL expects to pay a dividend of 0.7 cents per share (cps) in September 2024, 1.05 cps in March 2025, and 1.26 cps in March 2026. These consistent dividend projections not only underscore KSL's financial stability but also increase its attractiveness to investors looking for both capital growth and a dependable income stream
Source: Company’s Report
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