- Many NZX-listed companies are resuming dividend payments after cancellation or slash in dividends in 2020.
- Dividend provide an extra layer of protection and safety to investors.
- Investors are looking for dividend paying stocks after witnessing stressed incomes.
Investing can be difficult after a period when stock markets suffered historic lows and highs amid COVID-19 induced economic and financial disruptions. Stocks that pay good dividends can come as a rescue for investors with stressed incomes.
Many NZX-listed firms are paying good dividends after going through a challenging period. Amid this backdrop, let us look at these 6 NZX-listed dividend stocks that can prove to be good bets for investors.
Argosy Property Limited (NZX:ARG)
ARG delivered on many strategic areas like re-starting organic green development projects, attaining strong leasing outcomes, and performing on strategic acquisition prospects to deliver long-term capital growth in H1 of FY21.
On 10 March, ARG announced a cash dividend of 1.6125 cents per share (cpz) for Q3 of FY21, that will be paid on 30 March 2021. The Group expects its dividend of 6.45 cps for FY21, up from 6.3 5cps expected previously.
Spark witnessed a decline in overall mobile market revenue amid border closures and loss of roaming revenues in H1FY20. However, the Group’s underlying performance stayed strong with a rise of 3.8% on pcp in mobile service revenue and growth in cloud, security and service management revenue.
The Group expects EBITDA to be in the range of $1.10 billion-$1.13 billion for FY21 and revised its dividend guidance at 25 cents per share.
Vector Limited (NZX:VCT)
Vector performed strongly in H1FY21 with a 26.8% rise in Group’s NPAT to $102.1 million on pcp. The Group’s strategic alliance with Amazon are developing to deliver advanced energy solutions, like expansion of a next-generation advanced meter platform.
The Group is also halfway through EV smart charging trial. It declared an interim dividend of 8.25 cents per share, imputed at 10.5%.
Vector expects adjusted EBITDA between $500 million and $520 million for FY21 (up from $480-$500 million previously).
Genesis Energy Limited (NZX:GNE)
The Group performed strongly in H1 of FY21 due to a sharper performance across the Wholesale, Kupe and Retail segments with a 30% rise in EBITDAF to $217 million on pcp.
The Company declared an interim dividend of 8.6 cps, that will be paid on 1 April 2021. GNE expects EBITDAF to be in the range of $415 million-$425 million for the full year ended 30 June 2021.
On 9 March, at the time of writing, GNE was trading at $3.72, up 1.64%.
Precinct Properties New Zealand Limited (NZX:PCT)
The Group reported strong performance numbers for H1 FY21, backed by a boost in the operating income (+15.7%) after completion of many developments and positive tax outcome.
The 1H21 dividend totaled 3.25 cents per share, up by 3.2% on 1H20. Dividend guidance for the full year FY21 remains at 6.50 cp.
Completion of developments and sale of non-core assets continue to bolster a stable and improved earnings profile of PCT.
Chorus Limited (NZX:CNU)
Chorus posted a drop in its NPAT and EBITDA numbers for H1 of FY21 due to continued migration of customers from legacy copper services to alternative networks. However, the Group reported a rise in fibre connections by 62,000 to 813k.
Further, strong growth in housing has resulted in a strong demand for fibre installations. It plans to pay interim dividend of 10.5 cps on 13 April 2021.
Chorus expects EBIDTA in the range of $640 - $660 million for FY21.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)