Some ASX listed companies, besides being potential growth companies are also recognised as good quality dividend stocks. No wonder, these stocks prove their worth of getting included in a balanced retirement portfolio.
Telstra Group Limited (ASX: TLS)
In FY24, Telstra Group Limited (ASX: TLS) achieved its third consecutive year of underlying EBITDA growth, which increased by 3.7% to $8.2 billion. This was driven by strong performance from its mobile and infrastructure businesses, which accounted for 96% of its underlying EBITDA. Telstra added over 560,000 new mobile customers, resulting in a 5.6% increase in mobile services revenue. Additionally, its infrastructure businesses, including InfraCo Fixed and Amplitel, also experienced significant growth. However, the Enterprise business underperformed, leading to a decrease in reported EBITDA by 4.2%, totaling $7.5 billion, and a 12.8% drop in net profit after tax to $1.8 billion. Despite these challenges, Telstra's overall financial position remained strong, and the company declared a 5.9% increase in dividends, bringing the total to 18 cents per share for FY24.
Telstra is confident about its future, especially with ongoing investments in critical infrastructure and is among high growth stocks. The company has invested $5 billion in capex and mobile spectrum payments, totaling $42 billion over the past decade. This has enabled the roll-out of a nationwide 4G and 5G network, with 240,000 square kilometers of new mobile coverage. Telstra is also expanding its intercity fiber network and subsea cable systems, which will support Australia's digital growth, including AI and other emerging technologies. These investments underscore the pivotal role Telstra plays in ensuring reliable and secure connectivity for millions of Australians and businesses. Improving customer experience and operational efficiency remain core to the company's agenda.
For FY25, Telstra has set a target of continued underlying EBITDA growth, with guidance ranging from $8.5 billion to $8.7 billion. The company expects strong free cash flow between $3 billion and $3.4 billion, supporting its commitment to maintain and grow its fully franked dividend. Key priorities include advancing the T25 strategy, strengthening its mobile and infrastructure businesses, completing the reset of the Enterprise business, and enhancing productivity. Telstra is always keeping its operations simple and continuing to improve customer experience and focusing on infrastructure investment to ensure long-term sustainable growth and shareholder and customer value.
Transurban Group (ASX: TCL)
Transurban Group (ASX: TCL) reported its September quarter 2024 traffic update, revealing a 1.1% increase in Average Daily Traffic (ADT), which averaged 2.5 million trips per day. This growth was driven by positive results across most regions, particularly Sydney and Brisbane, although Melbourne experienced a slight decline. Sydney's traffic grew by 1.9%, supported by improvements in workday trips and freight transport, with heavy vehicle traffic rising along key routes like WestConnex, boosted by new infrastructure such as the Rozelle Interchange and Sydney Gateway. In contrast, Melbourne's ADT decreased by 1%, primarily due to ongoing construction works related to the West Gate Tunnel project and reduced container volumes at the Port of Melbourne. Brisbane saw a 1.3% increase in traffic, with freight travel rising 2.9%, particularly on key routes like Clem7 and Legacy Way. North American operations performed well, with a 6.5% increase in ADT, particularly on the 95 and 495 Express Lanes, boosted by the Fredericksburg Extension.
Transurban also reaffirmed its FY25 distribution guidance of 65 cents per security, signaling a 5% growth compared to FY24. The company highlighted the strong performance of its asset portfolio, emphasizing its ability to generate growth through both organic traffic increases and disciplined investments. Despite the macroeconomic challenges and disruptions from construction projects in Sydney and Melbourne, the company remains confident in its ability to deliver consistent returns. The continued growth in traffic, particularly from freight movement, illustrates the value of Transurban’s roads in supporting productivity and economic activity across regions.
Transurban reported a 6.7% rise in toll revenue for FY24, reaching over $3.5 billion, and a 7.5% increase in EBITDA to $2.6 billion. The company-maintained cost discipline, with total costs increasing by just 3.6%, outperforming expectations. This enabled Transurban to declare over $1.9 billion in gross distributions, with a 7% increase from the previous year. The company’s strong financial performance and its diversified portfolio position it well for continued growth, with a focus on optimizing efficiency and capitalizing on future growth opportunities.
Source: Company’s Report
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