Will these healthcare companies continue to pay dividends and attract investors?

Source: Shuttestock

As a principle, financially sound companies pay higher dividends. It is a distribution of profits by a corporation to its shareholders. When a company earns a profit or surplus, it is able to pay a proportion of that profit as a dividend to its shareholders. An amount not distributed is taken to be re-invested in the business itself.

Investors look at them for a secured income option. Sometimes dividends are also paid by well-established or mature companies, which have surplus funds to plough into growth and expansion as well as pay dividends.  Investors looking for a dividend income must track the dividend history of a company before making any investment decisions.

In the healthcare space, there are many companies that are paying dividends, but there are some like AFT, PEB, which have no dividend history or no plans to pay also. Let’s look at the companies that generally pay dividends and have a good dividend-paying history.

Arvida Group Limted

Arvida Group (NZX:ARV) is one of the largest aged care providers in New Zealand. It operates 32 retirement villages with more than 4,750 residents.

This group has a rich-dividend-paying history. It recorded its last dividend of 1.200 cps on December 1 and paid it on December 10, 2020. Before that, it paid dividend of the same amount to its shareholders in September 2020. Going forth, it has announced the record date for its interim dividend for FY21 as March 1, to be paid on March 10, 2021. Its gross dividend yield works out to be 2.983%.
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employees

On February 23, 2021, the stock was down by 1.10 % at NZ$ 1.790 at the close of the trade.

Fisher and Paykel Healthcare Corporation Limited

Fisher and Paykel (NZX:FPH) is one of the largest companies’ in the medical devices sector. It posted robust results in 2020 due to the increased demand for respiratory devices and hospital hardware during the ongoing COVID-19 pandemic.

The Company has paid final and interim dividends in the past years, 2019, and 2018. On December 16, 2020, it paid a dividend of 16 cents per share with imputation of 6.22 cents per share. The Company’s total dividend yield was 1.373%.

On February 23, 2021, the stock of FPH closed 4.08% down at NZ$ 30.57.

Ryman Healthcare Limited

Ryman Healthcare Limited (NZX: RYM) is one of the leading companies listed on the NZX. It builds and operates retirement villages across New Zealand and Australia. Currently, the Company is working on adding 6 more villages in Victoria and has strong plans for this year.

It has been giving interim and final dividends to its shareholders. The last non-imputed interim dividend it paid was on December 18, 2020, and before that, a final one on June 25, 2020.  While no upcoming dividend announcement has been made yet, the total dividend yield works out to be 1.429%.
Also Read: Would these NZX50 listed Healthcare stocks -RYM, FPH, EBO Keep On Truckin’ in 2021?

On February 23,2021, the stock closed up by 1.59% at NZ$15.290.

Oceania Healthcare Limited
Oceania Healthcare Ltd (NZX:OCA) is also a provider of residential aged care. It is also an operator of retirement villages in NZ, almost the sixth largest in position. The Company overcame the challenges of the COVID-19 pandemic successfully and reported an increase in NPAT by NZ$9.9M to NZ$28.8M for the six months ended November 2020 as compared to the same period last year.

Its operating cash flows increased by 30.9% to NZ$ 74.6M due to strong sales. Its last interim dividend was recoded on February 9, 2021, to be paid on Feb 24, 2021. It has a good dividend-payment history as well for 2020, 2019, and 2018. Its dividend yield was 1.689%.

The stock was down by 0.68% at NZ$1.470 at the close of the trading session.

EBOS Group Limited

EBOS Group Limited (NZX: EBOS)  is a marketing and distribution company, which sells medical, pharma, and healthcare products in Australia and New Zealand. The Company also sells animal care products. EBOS has a strong dividend-paying history. It paid interim and final dividends for 2020, 2019, and 2018.

The Company has been exhibiting strong dividend yields. For the year 2020, its gross dividend yield was 3.037%. Going forward, it has already announced an interim dividend of 42.500 cps for FY2021. The imputation amount will be 4.132 cps and will be recorded on March 4, to be paid on March 18, 2021.

ON February 23, 2021, Ebos stock closed almost 2% up at NZ$ 28.550

Radius Residential Healthcare Limited

Radius Residential Care Limited (NZX:RAD) is an elderly care provider, which specialises in  quality rest homes and private hospital care for the aged and sick. The Company has 22 branches across NZ and employs more than 1,700 people.

Also Read: A Glance at NZX Listed Retirement Village Stocks -SUM, RAD

It has no dividend-payout history, but for the first time, announced an interim dividend of 0.415 cps to be paid on February 26, 2021. The record date for the dividend was February 18. The investors can look forward to more dividends from the Company since a start has been made. The gross dividend yield stood at 0.554%.
On February 23, 2021, Radius stock closed 1% up at NZ$1.050

Comvita Limited

Comvita Limited (NZX:CVT) sells high-quality honey in New Zealand and other countries. Its brand Manuka Honey sells across the globe. The Company works with beekeepers to produce quality honey.
Read Also :Why Are These 3 NZX Stocks- MCK, CVT, IPL Trending on NZX Today?

This Company has paid dividend in the past, in 2018, but after that, in the subsequent years, has not paid any dividends. Even now, it has not announced any upcoming plans.

On February 23,2021, the stock closed up by 1.81% at NZ$ 3.380

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