Are these 5 unstoppable NZX dividend stocks set to outgrow market?

Highlights 

• Dividend stocks provide investors with a regular source of income.
• The Warehouse Group will pay a dividend of 17.5 cps on 3 December.
• South Port NZ plans to pay a dividend of 26cps in FY21.

Dividend stocks make a regular cash distribution to their shareholders, providing them with a good source of income. These stocks are generally well-established firms that have a good record of distributing dividends.

However, an investor needs to pick those dividend stocks that can prove to be good investment as not all of them are good investment options.

Let’s glance through the 5 dividend stocks that may perform well in coming months.

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Heartland Group Holdings Limited (NZX:HGH; ASX:HGH)

Financial services company, Heartland Group, posted earnings of $87 million in 2021, with growth rebounding in the second half of FY21 after a series of lockdowns in the first half. The Group's total asset flow growth rate was 8%, reflecting ebbs and flows caused by supply logistical disruptions and lockdowns.

Heartland paid a dividend of 7cps on 15 September and declared an interim dividend of 4cps, taking the total dividend to 11cps for FY21.

DO READ: Would 5 NZX dividend stocks prove resilient during market crash?

The Group is still on pace to meet its revenue projection of $93-$96 million.

HGH ended the day 1.33% in green to close at $2.29.

South Port New Zealand Limited (NZX:SPN)

On 1 November, South Port NZ announced that Thomas Foggo will retire from the Board. He was elected to the SPN Board in 2003. He has held the position of Deputy Chairman and has been the first and present Chairman of SPN's Health and Safety Committee.

ALSO READ: Are these NZX dividend payers going ex in November?

Tommy has been a valuable member of the Board of Directors.

SPN Board has maintained its usual dividend of 26cps for FY21 as well due to high earnings.

SPN ended the day 1.22% in red to close at $8.89.

The Warehouse Group Limited (NZX:WHS)

General merchandise and stationery supply retailer, the Warehouse Group, informed on Monday that it would be releasing its Q1 sales numbers on 12 November. WHS appointed Sarah Kenney as its Chief Digital Officer last month.

RELATED READ: Which are 5 NZX dividend stocks under NZ$5?

WHS will pay a final dividend of 17.5 cps on 3 December.

WHS ended the day 0.5% in green to close at $4.

Accordant Group Limited (NZX:AGL)

NZ’s biggest recruiter and staffing provider, Accordant Group, reported strong demand and activity for the 6 months ended 30 September 2021.

The Group declared an interim dividend of 6.5cps for the financial year ending 31 March 2022. The dividend will go ex on 18 November and will be paid to eligible shareholders on 1 December.

AGL ended the day 2.16% in green to close at $1.89.

Kathmandu Holdings Limited (NZX:KMD; ASX:KMD)

Clothing and equipment provider for travel and adventure, Kathmandu Holdings, announced the lapse of 170,357 performance rights on 5 November that were issued on 16 December 2020.

Related Read: Are the 5 NZX retail stocks benefitting amid the pandemic?

The Group expects its H1 FY22 profit to be lower than that of H1 FY21. KMD will distribute a final dividend worth 3cps on 15 December.

KMD ended the day 2.48% in red to close at $1.57.

Bottom Line

Investing in dividend stocks can be less risky and volatile. However, dividends are never guaranteed and may be paid by mature firms that are growing slowly.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)