Buy These Impressive ASX Dividend Shares for Market-Beating Returns

Team Veye | 25-Nov-2024

The exercise to identify highest paying dividend stocks from ASX listed companies stops at following stocks which have a high dividend yield

Helia Group Limited (ASX: HLI)

Share price -$4.405

Annual dividend yield  - 13.57%

Dividend Pay date -  19 September 2024

Dividend amount per share $0.15

Franking 100%

Dividend ex date - 4 September 2024

Market cap $1.22B

As of 25 November 2024

Helia Group reported a 1H24 statutory NPAT of $97.0 million and an underlying NPAT of $106.5 million. The disparity between the two figures is attributed to unrealized mark-to-market losses on its bond portfolio amid rising interest rates. The Board declared a fully franked interim dividend of 15.0 cents per share, payable on September 19, 2024, reflecting the company's strong capital position and commitment to shareholder returns.

Underlying NPAT declined year-over-year due to a smaller benefit from negative total incurred claims. Claims experience remained exceptionally low, consistent with FY23, which supported profitability. New business volumes remain soft, impacted by subdued high loan-to-value ratio (LVR) mortgage lending, the Federal Government’s First Home Guarantee scheme, and increased lender self-insurance. Despite these headwinds, Helia is focusing on growing and defending its lenders' mortgage insurance (LMI) market share, while working with stakeholders to expand the LMI market. Macroeconomic conditions provide a mixed backdrop. The Australian labor market remains resilient, with low unemployment (4.1%) and robust participation rates. Wage growth has been positive, aiding loan serviceability. National dwelling values rose 3.7% during the period, reaching record highs, which is particularly notable in markets like Western Australia and Queensland that have historically experienced higher negative equity levels. However, the rising cost of living and mortgage interest rates have modestly increased industry-wide mortgage arrears.

Helia’s refined strategic objectives aim to cement its position as the market leader in LMI. The company emphasizes operational agility, risk management, and sustained shareholder returns. Operational efficiencies and cultural improvements contributed to Helia being named the 2024 Top Insurance Employer by Insurance Business Magazine. The balance sheet remains robust, with total cash and financial assets of $2.8 billion, down 6% from FY23 due to dividends and share buybacks. The ongoing $100 million buyback program has reduced the share count by 3.7%, with $92 million remaining under the current authorization expiring December 31, 2024. FY24 insurance revenue guidance is set at $375–$415 million, and claims are expected to increase in 2H24, though still below the company's long-term expectations for an incurred claims ratio of ~30%. Helia is one of the top dividend stocks expecting the FY24 annual dividend to remain consistent with FY23, underscoring its preference for stable payouts. Helia's proactive capital management, market resilience, and strategic focus position it well to navigate a challenging macroeconomic environment and drive long-term shareholder value.

Atlas Arteria (ASX: ALX)

Share price -$4.845

Annual dividend yield  - 8.40%

Dividend Pay date -  7 October 2024

Dividend amount per share $0.20

Franking 0%

Dividend ex date - 24 September 2024

Market cap $6.90B

As of 25 November 2024

Atlas Arteria (ASX: ALX) reported a positive performance for Q3 2024, with toll revenue and traffic both showing growth compared to the same period last year. Overall, weighted average traffic increased by 0.6%, while toll revenue rose by 5.0%. The strong performance was largely driven by the APRR network, where traffic grew 0.6%, supported by a 1.7% rise in heavy vehicle traffic. Notably, the Paris Summer Olympic Games in August had a positive impact on commuter behaviour, with some French residents postponing their holiday travel until after the event. The increased demand for light vehicles in August and the typical summer dip in heavy vehicle traffic contributed to the overall rise in traffic and toll revenue, which was up 4.9% for APRR.

Further highlights include the growth at the ADELAC network, where traffic rose by 3.9% and toll revenue increased by 10.1%. The completion of roadworks along the route in early July, along with a 6.4% increase in cross-border work permits to Geneva, helped drive the strong traffic performance. The A79 also saw impressive results, with traffic up by 5.7%, driven by a 5.9% increase in light vehicle traffic and a 5.0% increase in heavy vehicle traffic. Toll revenue for the A79 rose by 8.4%, benefiting from elevated weekend traffic during the European summer holiday period.

In addition to traffic updates, Atlas Arteria announced the signing of a concession agreement for the A412 Thonon-Machilly motorway in France. This project, a joint venture between Eiffage and APRR, is a 55-year concession with a project cost estimated between €400 million and €500 million. The 16.5km greenfield motorway, expected to alleviate congestion and reduce travel times, will be constructed over the next four to five years. Eiffage holds a 99.9% stake in the consortium, with APRR holding a 0.1% stake, and APRR may acquire up to 99.8% of the project based on its financial and strategic considerations.

It is among quality high yield dividend stocks having a strong track record of delivering semi-annual dividends, reflecting its commitment to returning value to shareholders. Offering an approximate yield of 8.40%, Atlas Arteria is one great option for the investors in search of a more regular flow of income. 

Source: Company’s Report

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