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Highlights
- Free cashflows, strong ROEs, consistent dividend payments and low PE ratio are few attributes of healthy stocks.
- Hallenstein Glasson’s NPAT rose by 20% in annual results, though the dividend was deferred for the period.
- The Colonial Motor declared robust full-year results and has recently paid the dividend amount.
Ever since the outbreak of the pandemic, stock markets across the world have seen volatility. Right from hitting the rock bottom in March 2020 to surging up by more than 80% in 2021, the markets have seen all.
What kind of stocks could be considered for a portfolio?
In a diversified portfolio, different kinds of stocks from a range of sectors can minimise the risk of losses associated with the market volatility.
Stocks with greater operating and free cashflows, strong ROEs, consistent dividend payment and low PE ratio can be considered for long-term investments.
On 8 October 2021, the benchmark S&P/NZX 50 index last traded at 13,086.6 points, decreasing by 0.14%.
Given the backdrop, let’s explore 5 attractive NZX 50 stocks.
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Hallenstein Glasson Holdings Limited (NZX:HLG)
Clothes retailer Hallenstein Glasson Holdings Limited operates in both Australia and New Zealand.
In its last update, the Company provided annual results for the period ended 1 August. Hallenstein Glasson’s NPAT stood at NZ$33.32 million, rising by 20% on pcp.
Due to Auckland being under alert level and NSW and Victoria being under lockdown, in September, Directors of the Company decided to postpone a final dividend declaration until the cities were out of it.
It paid an interim dividend of NZ$23 cps on 16 April 2021 and has been consistently paying dividend amount for last 3 years.
On 8 October, Hallenstein Glasson last traded lower by 0.43% at NZ$6.9.
Related article; Hallenstein Glasson (NZX:HLG) Lifts Profit By 28%
Summerset Group Holdings Limited (NZX:SUM; ASX:SNZ)
Established in 1997, Summerset Group Holdings Limited is a retirement village operator.
Summerset Group released 6-month results for the period ended June 2021. During the period, underlying profit was noted at NZ$75.5 million, rising by 68%.
The company declared an interim dividend amount of NZ$9.9 cps, which was paid by 20 September. It has also been consistently paying a dividend amount for last 3 years.
By the end of the market session, on 8 October, Summerset Group was up by 2.74% at NZ$15.400.
Also read; Why is the Summerset (ASX:SNZ) share price up today?
Arvida Group Limited (NZX:ARV)
Another retirement village operator, Arvida Group Limited, declared its annual results for the period ended March 2021 in May this year.
During the period, IFRS NPAT was at NZ$131.1 million, surging by 207% on pcp.
FY21 dividend amount totalled 5.35 cps. Besides, the Company has been distributing dividend amount consistently for last 3 years.
On 8 October, Arvida ended the trading session flat at NZ$2.13.
Related article; Arvida Delivers Strong Results In Quarterly Report
The Colonial Motor Company Limited (NZX:CMO)
Owner of automobile dealerships across New Zealand, The Colonial Motor Company Limited, is domiciled in Wellington.
The Company declared full-year results ended June 2021 in mid-August. Trading profit after tax was noted at NZ$29.9 million, jumping by 61% on pcp.
The Company’s Board declared a total dividend amount of 40 cps, which was paid on 4 October, and has been paying dividend amount consistently for last 3 years now.
Colonial Motor’s shares ended the day’s trading session unchanged at NZ$10.4, as on 8 October.
Bottom Line
Volatility is often associated with stock markets, which is caused by various factors. Placing one’s hard-earned money into these stocks seems to be a risky affair. A prudent and well-researched approach can be followed while dealing with the trading of shares.