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%.