Two ASX200 Stocks to Watch: Blue-Chip Stability from Downer and Macquarie

May 05, 2025 10:32 AM AEST | By Team Kalkine Media

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Two ASX200 Stocks to Watch: Blue-Chip Stability from Downer and Macquarie — Image source: shutterstock

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Highlights

DOW shares rise 8.7% in 2025 YTD

MQG remains 18.5% below its 52-week high

Both firms offer steady dividends and industry leadership

As the ASX200 index continues to reflect Australia’s top-performing companies, two established names—Downer EDI Ltd (ASX:DOW) and Macquarie Group Ltd (ASX:MQG)—are drawing renewed attention from investors interested in resilient, income-generating businesses. Both companies offer unique exposure to vital sectors in the economy and hold potential appeal among those monitoring ASX dividend stocks.

Downer EDI Ltd (DOW) has seen its share price climb 8.7% since the beginning of 2025, underlining renewed investor confidence. While not a household name to many, Downer plays a critical behind-the-scenes role in infrastructure across Australia and New Zealand. The company operates Melbourne’s Yarra Trams and builds passenger trains used nationwide. Its business spans three core segments: Transport (over 50% of revenue), Utilities (20%), and Facilities (30%).

For the financial year 2024, Downer reported a debt-to-equity ratio of 81.1%, indicating a conservative approach to leverage. Over the last five years, the company has maintained an average dividend yield of 3.7%, a notable factor for those seeking dependable income streams. However, its return on equity (ROE) for FY24 was 3.6%, which may fall short of expectations for a mature industrial business.

On the financial services front, Macquarie Group Ltd (MQG) continues to stand out. Though the share price remains 18.5% below its 52-week high, the company has a reputation built on over five decades of uninterrupted profitability. Unlike traditional banks, Macquarie integrates investment banking, global asset management, and exposure to infrastructure, commodities, and real estate markets.

Macquarie reported a debt-to-equity ratio of 258.5% in FY24, suggesting higher leverage typical for institutions in its sector. The average dividend yield has stood at 3.2% since 2019, while the FY24 ROE came in at 10.4%, aligning with expectations for a financial giant of its scale.

With both stocks featured on the ASX200 index, they represent key players in their respective industries. For those tracking ASX dividend stocks, Downer and Macquarie offer two contrasting yet complementary profiles—one focused on essential services and infrastructure, the other deeply embedded in global finance.

Whether considering consistent dividends, established industry presence, or sector diversity, DOW and MQG are worth watching as part of a broader strategy focused on resilience within the ASX200 landscape.

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