5 NZX stocks with a healthy dividend yield

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5 NZX stocks with a healthy dividend yield

Dividend yield
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  • Higher-dividend yield stocks always attract investors, for they indicate the financial robustness of a company.
  • Boasting an impressive dividend yield of 7.06%, Spark New Zealand will organise its Annual Meeting in November.
  • Heartland Group Holdings with a dividend yield of 6.64% would pay a dividend this week.

Dividend declarations indicate the fundamental strength of a company and provide good cues about its sustainability. Hence, investors are constantly on the outlook of those stocks with health dividend yields.

Dividend yield calculates how much income has been received in relation to the share price. The more the dividend yield, the more attractive the stock is and vice-versa.

That said, this article covers the five NZX stocks with a healthy dividend yield.

Dividend yields of SPK, GNE, HGH, TPW, WBC

Image source: © 2021 Kalkine Media New Zealand Ltd, data source-Refinitiv

Spark New Zealand Limited (NZX:SPK)

First, we would look at the leading NZ telecom provider Spark New Zealand Limited.

It has a 7.06% dividend yield. The Company has informed its shareholders about holding its Annual Meeting in the first week of November.

At the closing bell on 16 September, Spark New Zealand dipped by 0.52% at NZ$4.770.

Related Read: How are these 3 NZX communication stocks performing amid frequent internet outages?

Genesis Energy Limited (NZX:GNE)

Genesis Energy Limited, which is the country’s leading electricity generator, has a dividend yield of 6.80%. Recently, the Company announced scheduling its Annual Shareholder Meeting on 29 October.

Details on whether the ASM would be held as a physical or a virtual meeting would be communicated later.

Moreover, it has advised its shareholders to send the director nominations by 17 September.

On 16 September, at the market close, Genesis Energy fell by 0.15% at NZ$3.350.

Must Read: A glance at 5 NZX stocks' results --SDL, EVO, MOV, GNE, WDT

Heartland Group Holdings Limited (NZX:HGH)

The next on our list is the financial services group, Heartland Group Holdings Limited, having a dividend yield of 6.64%.

Owing to higher growth across its portfolio in the latter half of the year, HGH witnessed a 20.9% increase in its NPAT, amounting to NZ$87.0 million.

As a result, it would be distributing a final dividend, amounting to 7.0 cps on 15 September along with offering a Dividend Reinvestment Plan to the eligible shareholders.

At the end of the market session, Heartland Group Holdings gained 2.17% at NZ$2.350, on 16 September.

Related Read: Which are 5 hot NZX dividend stocks to explore in September 2021?

Trustpower Limited (NZX:TPW)

Another electricity producing company on the list is Trustpower Limited, which has a dividend yield of 6.23%.

Owing to the prevailing uncertainties related to the COVID-19 pandemic and a 50-person limit on gatherings, the Company has decided to hold a virtual Annual Meeting on 22 September.

At the closing bell, on 16 September, Trustpower climbed by 0.13% at NZ$7.590.

Interesting Read: Is Trustpower (NZX:TPW) based in NZ? What are the recent deals struck by it?

Westpac Banking Corporation (NZX:WBC)

Last on the list is Westpac Banking Corporation, which is a leading banking and financial services provider across Australasia. The banking giant boasts a dividend yield of 5.15%.

Recently, WBC has provided an update on the sale of its Pacific businesses. Following the draft determination by ICCC, i.e., Independent Consumer and Competition Commission of Papua New Guinea, Westpac would continue to operate the above-mentioned businesses.

It is pointed out that earlier in December 2020, WBC had declared the sale of its Pacific businesses to focus on its operations across Australia as well as on Kiwiland.

In this regard, the sale of its above-said business to Kina Securities depended on getting approved by the authorities of Papua New Guinea and Fiji.

However, ICCC has denied the authorisation to Kina Securities.

Westpac Banking was up by 0.45% at NZ$26.740 on 16 September, at the market close.

Recommended Read: What are the top 10 NZX-listed financial companies?

Bottom Line

A healthy dividend yield goes a long way in communicating the financial well-being and sustainability of a company to its investors as well as other stakeholders.


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