Overview of Potential Dividend Growth for ASX Shares
Investors seeking income from their equity investments often keep a keen eye on companies with potential to increase their dividend payouts. Two such ASX-listed entities showing promising signs for heftier dividends in the near future are GQG Partners Inc and APA Group.
GQG Partners Inc: A Financial Stalwart With Growing Funds Under Management
GQG Partners Inc’s strategy of distributing a hefty 90% of its distributable earnings has made it an attractive dividend stock, further bolstered by its solid growth in Funds Under Management (FUM). Their latest FUM statistics show a remarkable increase, laying the groundwork for enhanced dividends in the years ahead.
- Increasing FUM: The FUM at GQG Partners has risen substantially, from an average of US$101.9 billion to US$143.4 billion at the end of the first quarter of 2024.
- Projected Dividend Yield: Analyst projections suggest a generous dividend yield of 8% in 2024, potentially climbing to 9% in 2025.
APA Group: Two Decades of Uninterrupted Distribution Growth
APA Group has established itself as a beacon of consistency with a track record of increasing its distribution annually for the past 20 years. The integral energy infrastructure company sees its distribution increments well-supported by a cash flow buoyed by inflation-indexed revenues.
- Inflation-Linked Revenue: A large proportion of APA Group’s earnings are inflation-adjusted, providing a buffer against inflationary pressures.
- Expected Distribution: The company has forecasted a distribution rise to 56 cents per security in FY24, equating to a yield of 6.7%, with an anticipated increase to 6.9% in FY25.
Concluding Insights
With GQG Partners Inc and APA Group showing signs of strong financial health and growth, investors seeking dividend-yielding shares could consider these two for their portfolios in anticipation of future profit sharing. As always, shareholders will look forward to corporate developments and market conditions that may impact these projections and, ultimately, their investment returns.