Dividends are an important criteria in investing. Consistency in Dividend Paying Stocks play more significant role for passive investors as they tend to view it as a regular source of income. Two high quality dividend stocks on the ASX are
ANZ Group Holdings Limited (ASX: ANZ)
ANZ reported strong half-yearly results for the period that ended on 31 March 2024, highlighted by significant milestones and financial performance metrics.
The bank's digital offering, ANZ Plus, showed robust growth, nearing 690,000 customers and accumulating close to $14 billion in deposits by April. Revenue from institutional payment platforms increased by 4%, with international payments growing by 8.5% year-on-year. International business also performed well, recording a notable 16% revenue growth. Despite a slight 1% decline, ANZ achieved a Group Statutory Profit after tax of $3,407 million and a Cash Profit of $3,552 million. The Board proposed an Interim Dividend of 83 cents per share, partially franked at 65%.
ANZ's proactive capital management strategy, including the planned share buy-back and the recent Suncorp acquisition, aims to optimize its capital efficiency and enhance shareholder value. The anticipated adjustments in ANZ's Level 1 and Level 2 Common Equity Tier 1 (CET1) ratios to 12.2% and 11.8%, respectively, post buy-back reflect a strategic effort to strengthen its financial position amidst economic uncertainties.
ANZ continues to lead with a robust customer-centric approach and innovative strides across both retail and institutional banking sectors. The bank's consistently high Net Promoter Scores and monthly acquisition of approximately 35,000 new customers, half of whom are newcomers, highlight its strong market presence and effective customer engagement strategies. The introduction of the API-enabled PayTo service for billers in Australia highlights ANZ's proactive approach in advancing digital payment solutions, aiming to enhance both efficiency and industry standards. This initiative underscores ANZ's commitment to driving innovation in financial services. ANZ’s focus on customer experience is evident through the continuous evolution of ANZ Plus features. These enhancements focus on improving financial wellbeing and include robust measures to protect customers from scams, reinforcing ANZ's commitment to trust and security.
Financially, ANZ reported solid profitability despite a slight decline compared to the previous period, supported by prudent credit risk management practices. This approach underscores ANZ's resilience and prudent financial management in navigating volatile economic conditions.
Vicinity Centres (ASX: VCX)
Vicinity Centres (ASX: VCX) declaring its fiscal year 2024 results for the period ended on 30 June 2024 reported total revenues of $1.32 billion for FY24, an increase from $1.28 billion in the previous year. The Statutory net profit after tax (NPAT) was recorded at $547.1 million, a significant rise from $271.5 million in FY23. The Funds From Operations (FFO) and Adjusted FFO (AFFO) per security exceeded the anticipated range, standing at 14.6 cents and 12.3 cents, respectively, attributed to robust leasing results and overall portfolio performance.
The company’s strong leasing results also bolstered both current and future income growth, with occupancy rates at 99.3%, a positive leasing spread of 1.1%, and an average annual escalator of 4.8% on new leases.
As of 30 June 2024, the company maintained a solid cash position of $49.6 million.
Over the last five years, the company has demonstrated consistent revenue growth, rising from $1.2 billion in 2020 to $1.32 billion in 2024. Concurrently, it has markedly enhanced its earnings profile, with funds from operations (FFO) increasing from $417 million to $664 million. Additionally, there has been a significant rise in net operating cash generation, which grew from $472 million to $690 million during the same timeframe. The overall financial structure and debt profile of the company have also remained stable with an asset base of $15.7 billion and total debt of $4.6 billion.
VCX is among dividend paying companies that have maintained its trajectory of consistent dividend payer. The dividends have ranged from $0.057 to $0.062 per share, reflecting a consistent approach to returning value to shareholders. The dividend cashflows projections indicate a sign of stability and growth potential, thus supporting investors interested in reliable income and long-term appreciation.
The company is persistently moving forward with its strategic expansion initiative, concentrating on acquiring premium retail properties while simultaneously enhancing the quality and ambiance of its current retail store network. This dual focus aims to elevate Net Promoter Scores (NPS) and enrich customer experiences. Following the successful completion of four minor projects, the company is making significant strides on major developments at Chadstone and Chatswood Chase, with anticipated completion dates spanning from FY25 to FY27, as illustrated in the accompanying graphic. This progress facilitates the company's strategic expansion and enhancement objectives. Furthermore, the organization has outlined essential divestments for the upcoming year, which are expected to bolster overall asset performance and optimize operational efficiency.
Source: Company’s Report
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