- The earnings season brings with it dividend declarations.
- Shareholders wait eagerly for these announcements.
- Several companies have their ex-dividend dates at the end of August and beginning of September.
Dividend stocks are a good source of income for risk-averse investors. Dividends give them a consistent income on a regular basis. Many companies suspended paying dividends during COVID-19 times to maintain a cash flow but now they are resuming their dividend payouts.
Dividends have an advantage as they can be reinvested through Dividend Reinvestment Plans of the companies.
Against this background let us look at 5 NZX-listed companies that have their record date at the end of August or beginning of September.
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Fletcher Building Limited (NZX:FBU)
This is an NZ-based infrastructure company. It declared a final dividend of 18 cps to be paid on 17 September 2021 and the ex-dividend date is 26 August 2021. FBU suspended dividend payments in 2020 and paid an interim dividend in March 2021. The last interim and final dividends paid by the Company were in the year 2019.
Also Read: Earnings Season: Which 5 NZX stocks are declaring dividends?
On 25 August, FBU was down by 0.52% at NZ$7.580, at the time of writing.
Contact Energy Limited (NZX:CEN)
It is an NZ-based sustainable energy company. In its full-year results declared on 16 August 2021, it reported a strong performance despite COVID-19-related challenges. CEN declared a final dividend of 21 cps to be paid on 15 September 2021 and the record date for the same is 26 August. The Company has a good dividend-paying history. It paid interim and final dividends even in FY2020.
Related Article: Is Contact Energy (NZX:CEN) government owned? Is it based in NZ?
On 25 August, CEN was trading down by 0.84% at NZ$8.27, at the time of writing.
It is an NZ and Australia-based group that provides banking services to its customers through its subsidiaries. While its annual result will be declared on 27 August, its final dividend of 7 cps will be paid on 15 September 2021. The record date for the dividend is 31 August 2021 and the imputation value of the dividend is 2.722 cps. The Group has a strong dividend-paying history as it has been rewarding its shareholders with dividends even during the COVID-19 pandemic.
On 25 August, the stock was trading up by 4.63% at NZ$2.260, at the time of writing.
This is an infrastructure company that also operates in Australia and other geographies. It primarily deals in the development and management of real estate like warehouses and logistics facilities. GMT declared an interim dividend of 1.375 cps to be paid on 16 September 2021. The record date for the dividend is 1 September 2021.
The Company has been paying historical dividends almost four every year - three interim and one final. In 2021 also, it has already paid two dividends.
0n 25 August, the stock was trading down by 0.38% at NZ$2.605, at the time of writing.
Summerset Group Holding Limited (NZX:SUM)
This is a retirement village operator in New Zealand. It declared its 1HFY21 results on 24 August 2021, in which it announced an interim dividend of 9.900 cps to be paid on 20 September 2021. The dividend carries zero-imputation credit and the record date for it is 6 September 2021.
The Group has been rewarding its shareholders with dividends throughout FY2020 and in 2021, has paid one interim dividend for the first quarter.
On 25 August, the stock was trading up by 10.22% at NZ$15.210, at the time of writing.
Bottomline: Dividends are very important sources of income for the shareholders as they have a stable payout. Companies with good cash flows pay dividends. In fact, investors wait for dividend payout announcements. In the earnings season, several companies announced their dividends.