ASX dividend stocks: A one-off 30% yield is up for grabs

Healius (ASX: HLS) is set to reward investors with a one-off special dividend of roughly A$300 million, or 41.3 cents per share. At the current share price of $1.44, that's a yield of approximately 28.5%.

The special dividend stems from the A$965 million sale of its Lumus Imaging business to Affinity Equity Partners, a deal that's forecast to be complete on 1 May 2025.

Lumus was the diagnostic imaging division of Healius, operating an extensive network of approximately 150 imaging sites nationwide. The business generated $519 million revenue in FY24, or approximately 29.7% of Group revenues.

Capital management

The Lumus sale marks a stepchange for Healius. Operationally, Healius is no longer a diversified healthcare provider spanning imaging, pathology, and day hospitals. This shift ditches lower-margin, capital-heavy segments for a focus on pathology’s stability and scale.

Over the years, Healius has typically carried a hefty amount of debt to fund growth and the capital-intensive components of the business. Upon sale completion, Healius expects to repay its existing $680 million of debt facilities and emerge debt-free for the first time in over a decade. After settling debt and funding the special dividend, it expects to sit in a net cash position.

Challenged earnings

Healius is currently progressing a T27 Transformation Program to revamp operations, cut costs, and pave the way for sustainable growth by 2027.

The company has faced several challenges in recent years, including asset write-downs, rising debt costs and a 25-year Medicare funding freeze on most pathology tests. These factors drove the share price down as much as 76% between January 2022 and May 2024.

While the stock has traded largely sideways over the past year, it’s not out of the woods. The stock tumbled 6.5% on the day of its half-year FY25 results on February 20, 2025.

The key numbers from the result include:

• Revenue up 10% to $934 million vs. Macquarie forecasts of $892 million (5% beat)

• EBITDA up 3% to $164 million (2% beat)

• Net loss after tax of $11 million (21% miss)

The result highlighted a solid pathology performance, with revenues up 7% year-on-year and volumes up 5%, offset by elevated labour costs, which account for almost 50% of the company's cost base.

Trading update

Healius provided a year-to-date (to 28-Feb) trading update, which noted revenue up 6.2% and volumes rising 4.0%. The update also offered some positive data on:

• Capex for FY25 to be $36 million (vs. market expectation of $43.4 million)

• Future capex to be $35 million per annum or equivalent to annual depreciation

• No large one-off capital items forecast

• To deliver high single digit EBIT margins by June 2027

The bottom line

The Lumus sale is set to clear the debt slate, fund a massive one-off dividend for investors. While Healius will emerge as a more focused and leaner business, the path ahead isn't an easy one. It must execute on its T27 Transformation Program, while managing broader headwinds such as rising labour costs, stagnant Medicare funding and competition from peers like Sonic Healthcare.

Still, Healius will step into its strongest financial position in decades, even if the path to higher margins, growth, and productivity remains a long haul.