7 NZX 50 dividend stocks with a yield above 5%

Summary

  • High dividend yields mean a lot to investors dependent on dividends
  • Many companies on the NZX50 pay good dividends
  • Mature and stable companies usually have good dividend yields

The dividend yields are a ratio reflecting how much a company pays out in dividends each year relative to its stock price.  It is mostly the mature and well-established companies that pay higher dividends. It is observed that companies in utilities and consumer sector pay higher dividends and therefore, high yields.

Investors looking for assured and stable income find companies with high dividend yields very attractive, but these could be companies that could be giving dividends at the cost of growth.  That’s why the high dividend yields are mostly associated with companies that are well established and not in the growth phase.

Sometimes, however, a company can be both, growing and giving high dividend yield. Let’s look at some companies with dividend yields above 5%.

Spark New Zealand Limited (NZX:SPK)

SPK is a leading telecom and digital provider which provides services like mobile, pay television and cloud computing. Spark is one Company with a high dividend yield of 7.211% in gross terms. Its net dividend yield works out to be 5.1% and capitalisation is upwards of NZ$8.2 billion. It announced its interim dividend of 12.500 cps in March 2021 and paid it in April of the same year.  

On 27 July 2021, the stock was up by 0.10% at NZ$ 4.820, at the time of writing this article.

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DO READ: Look at the 10 NZX shares with above 100% annual gain

Contact Energy Limited (NZX:CEN)

Contact is one of biggest electricity generation and distribution company in New Zealand.  It offers value to customers in terms of focusing on green energy options. It offers value to its customers by offering green energy.

CEN has a gross dividend yield of 5.53%. The Company’s latest interim dividend of 14 cps was paid on 30 March 2021.   CEN’s market capitalization is 6.37 billion and net dividend yield works out to be 5.2%.

On 27 July 2021, the stock was trading at the stock was trading down at NZ$ 8.220 down by 1. 79%, at the time of writing.

ALSO READ: What are dividends? How do dividends work in New Zealand?

Scales Corporation Limited (NZX:SCL)

SCL is a consumer company that operates through three segments—logistics, horticulture and food and beverages throughout Australia, NZ and the United States.

The Company has a rich payment history and even during the pandemic continued to pay dividends to its shareholders.  Its gross dividend yield is 5.663% . The latest final dividend paid by the Company was 9.500 cps. It was paid on 30 June 2021.  The total market cap of the Company is over NZ$ 670.93 M.

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On 27 July 2021, the stock was trading down by 0.21% at NZ$ 4.650, at the time of writing.

Heartland Group Holdings (NZX:HGH)

HGH is a financial services group with a emphasis on Best or only banking products in household, business or rural segments. Its gross dividend yield was 5.17% and net dividend yield at 3.72% and market cap at 1.10 billion.

On 27 July 2021, the stock was trading down by 1% at NZ$ 2.020, at the time of writing.

Genesis Energy Limited (NZX:GNEASX:GNE)

It’s an NZ-based energy company, that paid an interim dividend of 8.6 cps on 1 April 2021.  It’s gross dividend yield works out to be 6.546%.   Recently, it made an announcement about the retirement of its chief trading officer (CTO), Shaun Goldsbury.  It said that Matthew Boswell will work in the interim for three months till a new CTO is found.
Also Read: 10 ASX dividend stocks for NZ investors

On 27 July, the stock was trading down by 0.58% at NZ$ 3.454, at the time of writing.

Australia and New Zealand Banking Group Limited (NZX:ANZ, ASX:ANZ)

ANZ is one of the biggest banks operating in Australia and New Zealand. It has a strong dividend paying history and rewards shareholders with good payouts. The gross dividend yield for ANZ dividends works out to be 5.328% and it paid an interim dividend of 70cps on 1 July 2020.

Recently, the Bank also announced share buyback of nearly NZ$1.5 billion worth of stocks. The Bank has the financial muscle to pay dividends as well as support its customers via share buyback option.

On 27 July, ANZ was trading up by 0.65% at NZ$29.330, at the time of writing.

Trustpower Limited (NZX: TPW)

Tauranga-headquartered TPW that offers a range of Internet and phone services. It has been one of the largest energy and telecommunications company in NZ since it started in 1915.

The Company offers high gross yield of 6.281%. Company’s market cap is upwards of NZ$2.60 billion. A special dividend was paid to the shareholders on 10 June 2021.

Also Read: 3 NZX stocks with dividend yield over 5%

On 27 July 2021, the stock was trading down by 0.25% at NZ$ 7.870, at the time of writing.

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