ASX listed companies have a few stocks which, besides having a good yield are consistent too. Two of such best long term dividend stocks are
Viva Energy Group Ltd (ASX: VEA)
Viva Energy Group Ltd (ASX: VEA) trading performance in 1Q2025 aligned with expectations maintained by improved retail fuel margins heading into Q2. Commercial fuel volumes declined 6% due to extreme weather in key mining regions and reduced activity in low-margin wholesale channels. However, this was offset by margin expansion in most segments. Company-controlled retail fuel sales rose 1.1% YoY with margins showing strength particularly in March. Non-tobacco convenience sales edged up 0.5% maintaining a solid 38.2% gross margin.
Viva Energy, one of the high quality dividend paying stocks, continues executing its transformation strategy by completing the rebranding of Coles Express to Reddy Express and integrating the OTR Group. This expansion has increased its retail footprint to around 1,000 locations with more than 90 additional OTR sites in the pipeline. OTR’s premium convenience and QSR offerings are being rolled out across the company’s operated network. Around 40 to 60 store conversions or builds are planned for FY25, mostly in NSW, aimed at enhancing supply chain efficiency and market presence. These new-format stores deliver higher margins over time, despite higher service costs.
Focus in 1H25 is on finalising the retail business transition and launching synergy programs with 10 OTR conversions set for Q2. For 2H25, the group targets $30M in synergy benefits and $50M in broader cost reductions, alongside continued store rollouts and preparations to exit the Coles supply agreement in 2026. Refining operations will undergo a key maintenance phase in 3Q25, expected to reduce margins temporarily. Long-term capital demands will ease post-2025, freeing resources for retail growth. The company is also monitoring US tariff developments, though direct exposure remains limited.
IVE Group Ltd (ASX: IGL)
IVE Group Limited (ASX: IGL) achieved a strong financial performance for the 6 months ending 31 Dec. 2024. Revenue reached $507.8 million showing a minor increase from the previous year. Profit margins expanded, with gross profit margin improving to 48.5% and EBITDA rising by 12.6% to $74.1 million. EBIT climbed to $51.4 million, up 23.4% and underlying NPAT increased to $29.3 million, a 29.1% gain from the prior corresponding period. Earnings per share also improved with NPAT EPS up to 19.0¢ and NPATA EPS to 20.1cps. The company fully realised cost synergies from Ovato and JacPak acquisitions, which contributed to stronger profitability.
Cash conversion remained strong through 92.0% of EBITDA converted into operating cash flow, reflecting a return to more efficient working capital levels. Net debt decreased to $121.4 million from $131.0 million, despite increased capital investment and seasonal working capital needs. This improvement was aided by reduced restructuring costs. A fully franked interim dividend of 9.5cent per share was declared maintaining previous levels. The company expects annual dividends to remain steady at 18.0¢ per share going forward, balancing shareholder returns with debt reduction and investment in growth.
For FY25 Revised guidance places underlying NPAT between $47 million and $50 million. Capital expenditure is forecast at approximately $32 million, driven mainly by accelerated investment in packaging infrastructure. Net debt by year-end is projected to fall below the internal benchmark. Believing the current share price undervalues the company’s prospects, IVE Group announced an on-market share buyback of up to $10 million to enhance shareholder value.
(Source: Company Announcements)
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