A Look At 5 NZX Dividend Stocks From Retail Space In March

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Summary

  • Restrictions due to COVID-19 affected the retail sector initially, but the sector picked up in the second half of 2020.
  • A number of factors like strong government stimulus, tax cuts, contributed to its recovery
  • Several retail companies reported strong earnings and declared dividends for its shareholders

COVID-19 restrictions did have an impact on the retail sector in the first half of 2020, but the second half saw a rebound. Discretionary spending was down marginally, but spending on major household items, vehicles, and groceries saw an uptrend.

Accordingly, some companies in this sector reported better-than-expected results and declared attractive dividends for its shareholders. Let us have a look at some retail companies that declared their dividends to be paid in March.

Warehouse Group (NZX:WHS)

It’s one of the leading retail groups with six brands, which sells goods worth NZ$3 billion. The Group reported better-than-expected performance in its trading update of February 2021.

The Group reported strong performance which was supported by increase in consumer spending and improvements in its operations. The Company did not pay a dividend in 2020, so announced a fully imputed special dividend of 5 cents. The dividend was paid in March. The date for registering was February 17, 2021.
Also Read: NZX 50-listed Consumer Discretionary Stocks to keep an eye on in 2021 -- WHS, GSH, CMO, MCK
On March 10, 2021, the stock was trading at NZ$3.390, up by 2.73%.

Michael Hill New Zealand Ltd. (NZX: MHJ)

MHJ is a Jewelry retailer, which sells specialised jewelry across Australia,  New Zealand, and North America. It reported good sales and profits in its earnings report for the first half of 2021. In the sales announcement, it declared an interim fully imputed dividend of 1.5 cents per share. The record date for the dividend is March 11 and it will be paid on March 26, 2021. MJH also plans to increase the dividend amount in the second half of FY21 if the conditions improve.

On March 10, 2021, the stock was trading at NZ$0.710, down by 1.39%, at the time of writing this article.

PGG Wrightson Limited (NZX:PGW)

PGW is a retail company, which focuses on rural retail supplies, livestock, wool, horticulture, nutrition etc. It recorded a strong earnings growth for 1H21 with a 41% increase in its net profits.

It announced an interim dividend of 12 cents per share for its shareholders recorded on March 3, 2021, and to be paid on March 24, 2021. The imputation amount will be 0.466 cent per share. PGW has been strong with dividend payments in the previous years as well. 

On March 10, 2021, the stock was trading at NZ$3.220, up by almost 1%, at the time of writing.

Colonial Motor Company (NZX:CMO)

CMO owns more than 12 motor dealerships throughout New Zealand. It announced a dividend of 15.000 cents per share with the imputation value of 5.833 cents per share. The dividend will be paid on March 29, and the registration date is March 18. In 2020, the Company paid only one dividend, reflecting a dip in its earnings in the first half of 2020.

On March 10, 2021, the stock was trading up by 0.11%, at NZ$9.160, at the time of writing this article.

Spark New Zealand Limited (NZX:SPK)

SPK offers a number of telecom services through its three segments - wholesale, retail, and digital. SPK is rewarding its shareholders with a dividend payout of 12.500 cents per share to be imputed at 4.816 cents per share. The registration date is March 18, 2021 and will be paid on April 9, 2021.

On March 10, 2021, the SPK stock was trading down by 0.33%, at NZ$4.555, at the time of writing.

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