These 2 ASX dividend shares could pay dividend yields of at least 9% in FY25!

Dividends ahoy! These stocks are paying large yields from global profits.

| More on:
A retiree relaxing in the pool and giving a thumbs up.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These two ASX dividend shares are projected to pay large dividend yields in FY25.

Companies trading on a low price/earnings (P/E) ratio with a generous dividend payout ratio can deliver yields as much as 9% or even higher.

Dividends aren't guaranteed, and the possible payments are just projections at this stage. If profit keeps rising, though, the below businesses could have a good chance at delivering excellent passive income.

APM Human Services International Ltd (ASX: APM)

APM offers services for people with injury, illness or disability, children and older adults, unemployed people, and those facing hardship. According to the company, it helps people "find employment, improve their health and wellbeing and participate in their community".

The ASX dividend share had a solid FY23, with revenue rising 43%, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) growing 19% to $365 million and statutory net profit after tax (NPAT) jumping 161% to $107.4 million.

In FY23, its annual dividend doubled to 10 cents per share. Commsec estimates currently suggest that the dividend yield could be around 9% in FY25.

The business is expecting growth in a number of areas in FY24. For example, revenue from contracts it won before today can now flow through to the company's future financials.

At the current APM share price, it's valued at 8x FY25's estimated earnings, according to Commsec.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX. Based in the United States, the company is steadily growing its funds under management (FUM). This is an important earnings driver because a vast majority of its revenue comes from management fees rather than performance fees.

Fund managers can be particularly scalable because the same investment team can manage a $108 billion portfolio almost as easily — and without much increase in costs — as one worth $107 billion. So extra revenue can boost profit nicely.

GQG's main fund strategies have outperformed their benchmarks, and it's attracting strong fund inflows. As of August 2023, the business had experienced US$7.3 billion in the first eight months of 2023.  

The ASX dividend share has committed to pay 90% of its 'distributable earnings' as a dividend to shareholders. This is a generous dividend payout ratio.

In FY25, GQG is projected to pay an annual dividend per share of 16.5 cents, according to Commsec, which is a forward dividend yield of 11.3%.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended APM Human Services International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman holding $50 notes and smiling.
Dividend Investing

3 ASX dividend stocks to solve your income needs

These dividend shares have been given the thumbs out by analysts.

Read more »

A couple calculate their budget and finances at home using laptop and calculator.
Dividend Investing

Passive income: How much should you invest to earn $5,000 in annual ASX dividends

When it comes to passive income, I prefer ASX 200 shares with a reliable track record of making regular, fully…

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Which major ASX energy share will pay the best dividend yield in FY24?

And are ASX energy shares usurping mining and banking stocks when it comes to dividends?

Read more »

A florist gets some good news on his laptop and tablet, a big smile on his face as he is surrounded by flowers.

ASX gold investors, get ready for Newmont's first dividend

ASX newcomer Newmont is about to fork out its first dividend.

Read more »

Hand with Australian dollar notes symbolising ex-dividend date.
Dividend Investing

Here are 3 ASX dividend shares to buy for big yields

Here's what sort of yields analysts are forecasting from these shares.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Dividend Investing

This 10% ASX dividend stock is my pick for superior income in 2024

This share could pay huge income next year.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Start making passive income immediately with this ASX 200 dividend stock

Dividends are rapidly growing from this stock.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Dividend Investing

3 top ASX 200 mining shares for bank-busting dividend income in 2024

All three ASX 200 mining shares pay fully franked dividends.

Read more »