ASX Dividend Stocks: A 5% yield leveraged to the gold sector
Soaring gold and copper prices could give a kick to Euroz Hartleys, a dominant player in WA's capital markets sector.
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Mentioned
KEY POINTS
- Euroz Harley's is a dominant player in Western Australia’s equity capital markets and wealth management sector
- Its half-year FY25 results showcased its leverage to capital markets, with revenue up 33% to $52.9 million and a 501.4% jump in net profit to $6.2 million
- Market jitters and Trump tariffs have delayed IPOs, slowing capital market activity, but EZL’s $92.9 million cash buffer and strong commodity prices could help it navigate the challenges
I'm on a mission to uncover some of the market's most compelling dividend-paying stocks. The aim is to provide readers with the key data and forecasts to make more informed decisions. Today, we're reviewing WA's financial services business– Euroz Hartleys.
Euroz Hartleys (ASX: EZL) is a financial services company, with a dominant position in Western Australia's equity capital markets and wealth management scene. If you follow any microcap explorers, chances are EZL has handled their capital raisings.
Key stats
EZL shares have been trading sideways since 2023 and down around 60% from 2022 highs. This slide mirrors broader resource sector struggles, with the S&P/ASX Emerging Companies Index off 18% since 2022.
In 2022, EZL also sold its funds management arm, Westoz to WAM Capital, which was a significant revenue driver.
Yet, the company has found its footing in recent years. Here are some of the key stats.
Market cap: $155 million
Trailing 12-month dividend yield: 5.29%
Price-to-earnings ratio: 14.5
12-month performance: 13.1%
12-month trading range: $0.79 to $1.030
Euroz Hartleys 5-year price chart (Source: Market Index)
Latest results
The half-year FY25 results (released Feb 25, 2025) showcased a robust earnings rebound, fueled by a capital markets resurgence. Highlights include:
Revenue up 33.1% to $52.9 million
Net profit up 501.4% to $6.2 million
Interim dividend of 2 cents per share (approx 2.1% yield)
Cash and investments of $92.9 million
"We capitalised on a brief but strong capital raising window at the beginning of the period which saw total equity capital market (ECM) raisings of approximately $965 million for the half year, up 95% versus the previous corresponding period."
The last boom
The 2020–21 resource sector surge was a golden era for EZL. Gold soared 40% in five months from its March 2020 low, lithium snapped a two-year slump, and copper prices doubled. Lithium explorers flooded the ASX and had no trouble tapping the market to fund further development activities.
EZL was leveraged to this upswing, posting FY21 revenue of $131 million (up 164%) and net profit of $52.5 million (up 3,978%), with ECM raisings nearly doubling year-over-year.
Near-term volatility
The ASX's "upcoming floats and listings" page had more than a dozen companies slated for a March IPO. However, most have since pulled or delayed listing plans. Market volatility and jitters over Trump’s tariffs are largely to blame. While commodity prices signal a cyclical upswing, capital markets have hit a snag amid trade tensions and economic growth concerns. This could see EZL face near-term headwinds, but its strong balance sheet and earnings momentum offer a buffer against downside risk.
With commodity prices like gold and copper near all-time highs, a stabilising geopolitical and trade environment could support EZL's earnings recovery, as companies regain confidence and tap equity markets again.
