For investors looking to bolster their income portfolios, certain ASX All Ords stocks present attractive opportunities with significant return potential and solid dividend yields. Here are two stocks that stand out for their promising outlooks:
Orora Ltd (ASX: ORA)
Orora Ltd, a prominent player in the packaging sector, has garnered attention for its potential to deliver both stable returns and appealing dividends. Known for its defensive business qualities, Orora benefits from its diverse operations across multiple regions, including growth initiatives in the Americas and Australasia.
Despite facing near-term challenges, particularly with its Saverglass division, Orora’s overall performance is viewed favorably. Saverglass, which specializes in glass packaging for the beverage industry, is experiencing some volume headwinds but is expected to benefit from a trend towards premiumization in the alcohol sector over the long term.
In terms of dividends, Orora is projected to offer an annual dividend of 9 cents per share in FY 2024, translating into a yield of approximately 4.4%. This is expected to decrease slightly to 8 cents per share in FY 2025, resulting in a yield of around 3.9%. These yields are competitive, considering the stability and growth prospects of the company.
Analysts have identified Orora’s shares as undervalued at current levels. The company’s solid defensive qualities and growth prospects make it an appealing option for income-focused investors. The potential upside for Orora’s shares is estimated to be around 32%, adding to its attractiveness for those seeking both capital appreciation and income.
SRG Global Ltd (ASX: SRG)
SRG Global Ltd is a diversified industrial services group with a wide range of offerings, including construction, maintenance, production drilling, and geotechnical services. The company is well-positioned to capitalize on increased government-driven infrastructure projects and rising capital expenditures in the resources sector.
The anticipated expansion in infrastructure and resource industries is expected to drive demand for SRG Global’s services. With a focus on mining services, SRG is set to benefit from accelerating growth in iron ore and gold production. This positions the company favorably for continued growth and increased earnings.
In terms of dividends, SRG Global is forecasted to provide a fully franked dividend of 4.7 cents per share in FY 2024, resulting in a yield of 5.1%. This is expected to increase to 5.6 cents per share in FY 2025, translating into a yield of approximately 6.1%. These yields reflect SRG’s strong performance and growth potential.
Given its diversified service offerings and favorable market conditions, SRG Global is considered a promising investment with significant upside potential. Analysts have projected a potential upside of about 47% for SRG’s shares, highlighting its attractiveness as a dividend stock with substantial growth prospects.
Both Orora Ltd and SRG Global Ltd present compelling opportunities for investors seeking to enhance their portfolios with blue-chip stocks that offer attractive dividend yields and substantial return potential. These companies' solid growth strategies and stable income streams make them noteworthy considerations for those looking to build a robust investment portfolio.