Stock markets have already started discounting a rate cut in next Fed meeting later this month. In fact there is so much optimism that investors are craving for this to be on higher side. If and how it comes will impact the bonds and fixed-income assets the most leading to renewed interest in Upcoming Dividend Stocks. In the current scenario, some of the best upcoming companies to invest in are
Note - Share Price as of 3 September 2024
Viva Energy Group Limited (ASX: VEA)
Share price $2.925
Annual dividend yield 9.15%
Dividend Pay date 25 September 2024
Dividend amount per share $0.067
Franking 100%
Dividend ex date 9.9. 2024
Market cap $4.70 B
Viva Energy Group Limited, in 1H2024, demonstrated strong growth and made significant strides in its strategic agenda. Group fuel sales increased by 6% to 8.3 billion litres, while Group EBITDA (RC) rose 25% year-over-year to $452 million. The company’s net debt stands at $1,452 million, largely due to financing the OTR acquisition. A dividend of 6.7 cents per share was declared, reflecting a 70% payout ratio of Convenience & Mobility (C&M) and Commercial & Industrial (C&I) businesses.
Strategically, the OTR Group acquisition was completed, advancing the goal to grow C&M EBITDA above $500 million by 2028 and expanding the company’s commercial presence in regional areas. The integration of C&M is on track to deliver over $60 million in annual synergies within three years post-acquisition.
In 1H2024, the Convenience & Mobility (C&M) segment maintained stable EBITDA (RC) compared to 1H23, despite pre-integration overheads, with minor declines in fuel and convenience sales and a 5% drop in same-store sales. The Commercial & Industrial (C&I) segment saw robust growth, with an 8.7% increase in pro-forma sales (10% actual) and a 2.9% rise in EBITDA (RC) to $238 million, driven by new business wins and Defence contract implementation. The Energy & Infrastructure (E&I) segment operated near full capacity, achieving a 97% availability rate, though GRM was impacted by a polypropylene plant outage, costing approximately A$10M. Operating costs declined to A$9.7/BBL due to full production and reduced coastal shipping costs.
Viva Energy set to navigate a challenging environment with promising opportunities. In Convenience & Mobility is among the Upcoming Stocks to Watch. Its focus will be on integrating the newly acquired businesses to capture cost synergies from FY25, with anticipated improvements in sales during the traditionally stronger second half of the year.
Viva Energy offers a compelling opportunity because of its leading role in Australia's largest company-operated fuel and convenience network and its explicit expansion plans. The company’s strategic acquisitions and investments in low carbon energy—such as EV charging stations and hydrogen refuelling infrastructure—underscore its commitment to future growth and sustainability.
NIB Holdings Limited (ASX: NHF)
Share price $6.265
Annual dividend yield 4.51%
Dividend Pay date 8 October 2024
Dividend amount per share $0.14
Franking 100%
Dividend ex date 5.9.2024
Market cap $3.11 B
nib holdings limited (ASX: NHF) in its annual financial results for the fiscal year 2024, ending on 30 June 2024 reported a Group Underlying Operating Profit (UOP) of $257.5 million, reflecting a substantial increase of 77.3% under the new accounting standard (AASB17) and a 5.9% rise under the previous standard (AASB1023) for the twelve-month period ending 30 June 2024.
Group revenue reached $3.3 billion, marking a 9.3% increase compared to FY23, while group claims amounted to $2.5 billion, up 6.7% from the previous year. Additionally, net investment income contributed $61.7 million to pre-tax earnings, representing a 12.8% increase from FY23.
Nib’s primary Australian Residents Health Insurance (arhi) segment achieved record sales in FY24, driven by strong demand for higher-value combined hospital and extras policies. Furthermore, Nib’s travel, international students and workers, National Disability Insurance Scheme (NDIS) business, and operations in New Zealand collectively accounted for approximately 26% of UOP.
The company announced a second-half dividend of 14 cents per share, fully franked, culminating in a total annual dividend of 29 cents per share (compared to 28.0 cents per share in FY23). This full-year Upcoming Dividends correspond to a payout ratio of 75.7% of FY24 NPAT.
The company has maintained a strong financial growth trajectory in recent years, with revenues increasing from $2.47 billion in 2020 to $3.2 billion in 2024.
The company demonstrates a robust strategic framework by engaging various market segments to address health and medical insurance requirements. It is noteworthy that the company is actively pursuing substantial inorganic growth to fulfil its expansion objectives, all while meticulously managing associated risks.
Resimac Group Limited (ASX: RMC)
Share price $0.915
Annual dividend yield 7.48%
Dividend Pay date 20 September 2024
Dividend amount per share $0.035
Franking 100%
Dividend ex date 5 9.2024
Market cap $374.00 M
Resimac Group Limited (ASX: RMC) is among the upcoming stocks, consistently achieving moderate growth in its Home loan AUM, alongside increasing lending activity in Asset Finance and RMBS segments. The company's improved settlements rates and stable NIMs are additionally driving positive financial outcomes.
The company is dedicated to enhancing growth within its Asset Finance segment, which is a key priority and objective in the short to medium term. This involves improving core capabilities and expanding Asset Finance AUM. The recent $350 million Asset Backed Securities (ABS) transaction is particularly noteworthy as it represents the company's first ABS transaction, signaling further growth potential in the targeted Asset Finance area.
Resimac has demonstrated a robust and consistent increase in its AUM within its home loan portfolio, while simultaneously achieving notable growth in other segments. The expansion of lending activities and AUM in both the Asset Finance and Residential Mortgage-Backed Securities (RMBS) segments highlights the company's enhanced lending streams, which contribute positively to the overall growth rates of Group AUM. Furthermore, Resimac exhibits strong fundamentals across its established home loan segment, as well as its expanding RMBS and Asset Finance segments, which have recently experienced significant improvements in settlement rates. The Asset Finance segment, in particular, has achieved record settlements. These elements collectively serve to reduce substantial operational and capital risks for the group and its stakeholders, as the lending profile continues to expand. Additionally, the company's stable net interest margins (NIMs) present a promising opportunity for sustained earnings growth for investors in the medium term. Additionally, the company's substantial dividend yield of 7.48% offers investors a strong income-generating opportunity.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.