3 reasons to buy this $6 billion ASX 200 dividend stock today

A top expert foresees strong growth prospects for this ASX 200 dividend stock.

Looking to add a promising S&P/ASX 200 Index (ASX: XJO) dividend stock to your portfolio?

Then you may wish to run your slide rule over Steadfast Group Ltd (ASX: SDF).

Shares in the insurance brokerage company are bucking the broader market sell-off today, up 0.6% to $5.51.

That sees Steadfast commanding a market cap of some $6.1 billion.

As for passive income, at $5.51 a share, the ASX 200 dividend stock trades on a fully franked trailing dividend yield of 3.3%.

And with shares down 6% in 2025, MPC Markets' Mark Gardner sees some significant growth potential ahead (courtesy of The Bull).

A man with a wide, eager smile on his face holds up three fingers.

Image source: Getty Images

ASX 200 dividend stock keeps growing profits

"Steadfast has demonstrated consistent growth and resilience, delivering 11 consecutive years of underlying profit growth," said Gardner, who has a buy recommendation on the ASX 200 dividend stock.

Citing the first reason he's bullish on Steadfast Group shares, Gardner said, "The company's robust business model, combining insurance broking and underwriting agencies, provides multiple avenues for expansion and risk mitigation."

The second reason Steadfast shares are a buy is the competitive advantages provided by the company's in-house technology.

"The group's proprietary technology platforms offer a significant competitive advantage in efficiency and market reach," Gardner said.

And the third reason the ASX 200 dividend stock looks attractive is its ongoing growth outlook.

According to Gardner, "The company's strong market position, diversified revenue streams and strategic international expansion, particularly into the US market, further enhance its growth prospects."

What's been happening with Steadfast Group?

Steadfast reported its half-year results (H1 FY 2025) last week on 25 February.

Highlights included an 11.5% year-on-year increase in underlying revenue to $881 million.

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) were up 14.6% to $262 million. And underlying net profit after tax surged by 20.9% from H1 FY 2024 to $128 million.

As for that passive income, the ASX 200 dividend stock boosted its interim dividend payout by 15.6% to 7.8 cents per share. It's a bit late to grab that payout, as the stock traded ex-dividend on Monday, March 3.

Commenting on the results on the day of the release, Steadfast CEO Robert Kelly said:

These results are again the consequence of the strategic execution of our proven business model.

During 1H25, we continued to make accretive acquisitions, grow our businesses organically, optimise subsidiary performance, identify opportunities to hub our equity brokers and focus on margins and expense discipline.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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