Best Dividend Stocks on ASX to Buy Now

In 2025, GR Engineering and Pepper Money showed the market that yield is not dead. These are not just dividend-paying companies they’re dividend growers, backed by operational scale, balance sheet strength, and an ongoing commitment to capital return. For investors chasing real income in uncertain markets, these two Top Quality Dividend Stocks delivered exactly what mattered.

Dividend Stars of 2025: GR Engineering and Pepper Money Deliver for Shareholders

Key Takeaway: In a market where capital returns are increasingly scrutinised, GR Engineering Services and Pepper Money are the High Quality Dividend Paying Stocks which stand out not only for resilient performance but for consistently rewarding shareholders through meaningful, growing dividends.

GR Engineering Services (ASX: GNG)

GR Engineering Services: Cash-Rich and Committed to Shareholder Value

GR Engineering Services (ASX: GNG) continues to execute like a dividend machine. For HY25, the company delivered $272.1 million in revenue, up from $187.3 million a year earlier - a 45% increase. EBITDA rose to $34.5 million, reflecting strong operating margins and consistent project execution. As of 31 December 2024, the Group maintained a net cash position of $111.8 million, with zero debt and a clean, scalable balance sheet.

GNG, among the Best Long Term Dividend Stocks rewarded shareholders with a fully franked interim dividend of 10.0 cents per share, up from 9.0 cps in HY24. That’s a clear signal of confidence especially when paired with the $16.7 million in dividends paid during the period. GR’s payout is fully backed by strong operational cash flow of $56.1 million, ensuring that returns are not only attractive but sustainable.

From major EPC contracts in copper and gold like the $77.6 million Eloise Copper Expansion and the $155 million King of the Hills upgrade to expanding maintenance and automation services, GR’s revenue visibility continues to build. With no borrowings, strong client relationships, and rising shareholder count (now nearly 5,000), GR Engineering is proving that growth and dividends don’t have to be mutually exclusive.

Pepper Money (ASX: PPM)

Pepper Money: Yield-Driven Strategy in a Tight Lending Market

Despite tougher conditions in 2024, Pepper Money (ASX: PPM) emerged stronger, delivering robust returns while preserving balance sheet strength. Net profit after tax came in at $98.2 million, while pro-forma profit before tax and loan loss provisions increased 9% to $209.2 million. This disciplined execution underpinned a total dividend of 12.1 cents per share, up 41% from the previous year, supported by a payout ratio of 54.1%.
The final fully franked dividend of 7.1 cents per share to be paid in April 2025 - follows a 5.0 cent interim dividend paid in October 2024. Pepper’s revised dividend policy (now paying 30-60% of NPAT, up from 30-40%) reflects confidence in cash flow sustainability. Backing this up, the company closed 2024 with $124 million in unrestricted cash, up from $99.8 million in June.

Even in a higher-rate environment, mortgage originations grew 5% to $4.1 billion, and asset finance rebounded in H2, showing improving traction. With product innovation (like Sharia and SMSF lending), a strong NPS across segments, and capital-light annuity-style income from whole loan sales, Pepper is using discipline and diversification to underpin growth and dividends alike.

In 2025, GR Engineering and Pepper Money showed the market that yield is not dead. These are not just dividend-paying companies they’re dividend growers, backed by operational scale, balance sheet strength, and an ongoing commitment to capital return. For investors chasing real income in uncertain markets, these two delivered exactly what mattered.

(Source: Company Announcements)