ASX listed companies comprises of certain shares of dividend paying companies, which besides being high yield are very consistent also.
IPH Ltd (ASX: IPH)
IPH Ltd (ASX: IPH) declared robust results for the half-year ended 31 December 2024, reaching a 20% increase in Underlying Net Profit After Tax (NPAT) to $61.0 million. This growth was driven by organic growth in Australia and New Zealand, along with an uptick in Asian patent filings, which rose by 10%. The company also benefited from strategic acquisitions in Canada, including the integration of ROBIC, Ridout & Maybee, and Bereskin & Parr, contributing to higher earnings. Despite challenges such as an increase in corporate costs and a rise in patent processing fees in Canada, IPH delivered a solid 11% growth in Underlying EBITDA to $100.5 million.
The company has a strong cash generation and capital management focus, with a 100% cash conversion ratio. The company completed a capital raising of $125 million, which was used to fund the acquisition of Bereskin & Parr and reduce debt. Net debt was reduced by 16% to $300 million, and the leverage ratio remained well within the target range. The company has also commenced an on-market share buyback and is returning excess cash to shareholders. This reflects IPH’s balanced approach to growth, while ensuring solid returns for investors.
The company, one of the best quality dividend stocks, remains committed to delivering value to shareholders, with an interim dividend of 17.0 cents per share, up 6% from the previous period. The company’s current dividend yield stands at 7.73%, representing its strong cash position and focus on rewarding shareholders. IPH is seeing promising growth in Asia and Canada, positioning itself well for continued organic growth and expansion across its markets.
McMillan Shakespeare Ltd (ASX: MMS)
McMillan Shakespeare Ltd (ASX: MMS) achieved a solid financial performance for the half-year ended 31 December 2024.
The company, one of the best long term dividend stocks achieved statutory net profit after tax (NPAT) of $45.2 million, a 3.4% increase compared to the same period in the previous year. The company’s normalised revenue grew by 2.4% to $267.4 million, supported by growth across all segments, despite a 7.1% decline in normalised EBITDA. This drop was primarily due to increased investments in customer growth and ongoing efficiencies, including $4.4 million in non-recurring costs. MMS declared a fully franked dividend of $0.71 per share, representing a 100% payout ratio of Normalised UNPATA.
The company experienced positive momentum in its various business segments, with novated lease sales in its GRS division increasing by 6.8%. The launch of Oly, a novated leasing brand, helped drive growth, expanding its distribution to 312 new employers. The PSS division also performed well, posting a 6.0% revenue increase, while AMS recorded a 2.4% revenue growth and an 8.8% increase in written-down value, boosting customer fleet renewals. The company continues to execute its Simply Stronger program, which is expected to deliver greater efficiencies in the second half of FY25.
For the second half of FY25, the company expects Normalised UNPATA to be higher than in the first half, benefiting from ongoing growth in novated sales, the expansion of Oly, and cost-saving initiatives from the Simply Stronger program. Onboard Finance is also expected to contribute positively, with the final year of normalisation adjustments anticipated to decrease. The company is focusing on customer experience, technological advancements, and broadening its range of services. The FBT exemption for plug-in hybrids ended in April 2025, although the exemption for battery EVs will continue until at least 2027.
(Source: Company Announcements)
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