AUS
NZ
UK
CA
USA
IND
Highlights
- Investment in a few high-dividend yield-paying companies with strong fundamentals can protect investors’ portfolios to some extent in tough times.
- Genesis, Heartland, Spark and ANZ have dividend yields of over 7%.
- Proper technical and fundamental analysis is required for long-term investment in dividend-paying stocks.
As March ends, global equity markets are commencing on a mixed note amid a continued war between Russia and Ukraine as well as inflation and interest rate hike concerns. Dividend stocks yielding high dividends can come as safe bets in an uncertain environment like the present one.
Investment in a few high-dividend-yield-paying companies with strong fundamentals can protect investors’ portfolios to some extent in tough times. Dividend stocks are particularly alluring to investors looking for less volatile and low-risk investments.
On this April Fool’s Day, let’s skim through 5 NZX stocks paying over a 6% dividend yield.
Image source: © 2022 Kalkine Media®, Data source- EODHD/Others
Genesis Energy Limited (NZX:GNE; ASX:GNE)
A leading diversified energy company of NZ, Genesis, advised on 24 March that the share issue price stood at NZ$2.7738/share, issued instead of cash for this year’s interim dividend, under GNE’s DRP plan.
ALSO READ: WBC, ANZ, HGH: 3 banking stocks in news amid rate hike reports
Genesis will pay an interim dividend of 8.7cps on 1 April 2022.
On 1 April, at the time of writing, GNE was trading at $2.87, down 0.35%.
Heartland Group Holdings Limited (NZX:HGH; ASX:HGH)
Heartland bank delivered a 7.8% rise in NPAT to $47.5 million for H1 FY22. The bank announced on Friday that it will acquire StockCo Holdings 2 Pty Ltd from its present shareholders. It will also buy all shares in StockCo Australia Management Pty Limited, which along with StockCo Holdings 2 Pty Ltd will be called as StockCo Australia.
ALSO READ: ANZ to WBC: 3 NZX stocks on watchlist as banks increase mortgage rates
Heartland paid an interim dividend of 5.5cps on 16 March 2022 for H1 2022. The strike price for the DRP stood at $2.11047052 per share and the forex rate that will be used to pay cash dividend was AU$0.9312.
On 1 April, at the time of writing, HGH was trading at $2.29, up 1.78%.
Spark New Zealand Limited (NZX:SPK, ASX:SPK)
NZ’s telecom giant Spark announced on 31 March that the price of each share to be issued via the DRP for the H1 FY22 dividend payment will be $4.6339. Shares are likely to be issued in the DRP on 8 April 2022.
Spark will pay an interim dividend of 12.5cps on 8 April with an imputation credit of 4.861cps. The dividend went ex on 24 March 2022.
On 1 April, at the time of writing, SPK was trading at $4.6, up 0.44%.
Australia and New Zealand Banking Group Limited (NZX:ANZ,ASX:ANZ)
The biggest bank in NZ, ANZ’s net interest margin declined by 8bps for the quarter ended 31 December 2021. ANZ also announced on Friday that it has begun ANZ Worldline Payment Solutions, which is a JV with a prominent European payments provider Worldline.
ANZ paid an interim dividend of 72cps on 16 December 2021.
On 1 April, at the time of writing, ANZ was trading at $29.59, down 1.33%.
Westpac Banking Corporation Limited (NZX:WBC, ASX:WBC)
Westpac benefitted from a positive environment, reporting substantial earnings and dividend recovery. The Group’s capital was maintained at a healthy 12.3%, allowing dividends to be increased to a more normal payment of 118cps for the full year.
DO READ: Which are top 3 NZ banks to explore in 2022?
The bank also made alterations in its employee salary pay talks on Thursday, allowing employees to talk about their salaries.
On 1 April, at the time of writing, WBC was trading at $25.96, down 1.37%.
Bottom Line
Dividend stocks may give safer returns in abnormal and volatile times like the COVID-19 pandemic and the ongoing Russia-Ukraine war. However, proper technical and fundamental analysis is required for long-term investment in dividend-paying stocks keeping in mind geopolitical and economic factors.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)