Blue-chip stocks are stocks of companies that are popular, well established, large, and have been operating for decades. Most of these stocks also have a track record of paying good dividends, though paying dividend is not a pre-condition for a stock to be blue-chip.
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Even if they aren't always among the most popular companies, blue-chip stocks seek to make money for shareholders over a long term. Investors are attracted to invest in a business that has been stable for decades and has dependable financials.
Let’s have a look at 5 exciting blue-chip NZX stocks with robust earnings.
Fonterra Co-operative Group Limited (NZX:FCG)
Fonterra has offered to permit its farmers to purchase the listed Fonterra Shareholders’ Fund. The Company noted that the capital structure review was required to be prepared for falling or flat milk supply in New Zealand because of factors like climate change, regulatory modifications, and alternative land use.
Fonterra’s shares went into a trading halt until the capital structure review announcement. Trading resumed on Friday.
On 10 May, FBU ended the trading session at $3.46, down 12.41%, from its previous close.
Fisher and Paykel witnessed a strong 2020 due to heightened demand for its respiratory and hospital hardware amid COVID-19 pandemic. The Group’s operating revenue rose 73% for the 9 months ended 31 December 2020 compared to pcp with 446% growth in hospital hardware group and 54% growth in hospital consumables.
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On 16 December 2020, it paid its last interim dividend of 16cps, up by 33% on pcp.
On 10 May, FPH ended the trading session at $33.9, up 0.3% from its previous close.
Meridian’s operating report for March quarter of 2021 showed that the inflows in Q3 were 70% of the historical average and 31% lower than pcp. However, the Group reported a 19% rise in its net profit for H1 ended 31 December 2021. Its customer numbers have grown over 0.5 million across NZ and Australia since June 2020.
The company unveiled an LTI scheme on May 3, which will aid in the retention and attraction of key workers. That would also assist with taking into account the rights of the Company's shareholders.
On 10 May, MEL ended the trading session at $5.32, down 0.19% from its previous close.
Fletcher Building reported strong results for HY21, showing good progress in its strategy for consistent growth and performance. The Group posted a revenue of $3.9 billion and an NPAT of $121 million for the first half of FY21, up by 1% and 48% in HY20.
The Group also paid an interim dividend of 12cps on 24 March 2021. It expects Group EBIT to be in the range of $610 to $660 million in FY21.
On 10 May, FBU ended the trading session at $7.45, up 0.95% from its previous close.
EBOS Group posted a record profit for H1 of FY21. It reported underlying NPAT of $94.3 million and revenue of $4.7 billion, up by 14.2% and 6.3%, respectively. The company’s healthcare and animal care segments logged in very strong growth and added to the overall result.
The Group also permanently hired its current acting CFO Leonard Hansen. On the other hand, it declared resignation of Sean Duggan as the CEO of its Animal Care and Consumer Brands businesses.
The Group also paid an interim dividend of 42.5cps on 18 March 2021, up by 13.3% on pcp.
On 10 May, EBO ended the trading session at $31, up 1.27% from its previous close.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)