Cash-Rich Consumer Companies Reward Shareholders With Dividend Bonanza

Source: Fox_Ana, Shutterstock

Even in these times of economic uncertainty, one sector that has performed well is the consumer sector. In general terms, in such times, discretionary spending and consumer durables tend to decrease, but spend on fast-moving goods witnesses a steady growth.

These companies are usually cash-rich and therefore their dividend payouts are also attractive. For such consumer businesses, a huge advantage involves recurring revenue.

The NZX has a number of consumer stocks that have added to the investors’ portfolios by paying dividends.  Let’s look at some of the dividend-paying companies in the consumer space.

Seeka Limited (NZX:SEK)
This is an horticulture company, which is growing, processing, and distributing high-quality produce to the global markets. It is a cash-rich company, and despite disruptions in the supply chain, announced a net profit of NZ$15.2M and a total revenue of NZ$251M.

Also Read: How did Seeka (NZX:SEK) Settle A Decade Old Kiwifruit Claim?

The Company has paid a dividend of 22.000 cents per share in the whole year, for 12 months. And declared a final dividend of 12.000 cents per share to be recorded on March 4 and paid on March 30, 2021. A dividend reinvestment plan has also been announced with 2% discount to the strike price.

On March 2, 2021, the stock was trading at NZ$4.960, up by 1.22%, at the time of writing this copy.

EBOS Limited (NZX:EBOS)

The company, which sells and distributes consumer and healthcare products, reported a record growth for the first half of FY21. Its net profit recorded a double-digit growth. Its underlying NPAT was up 14% at NZ$94.3M. It has a good operating cash flow of NZ$98.7M, which is also showing an increase of 33%.

EBOS declared an interim dividend of 42.5 cents per share. This reflects an increase of 13.3% over the pro increase of 13.3% on the prior period. The Dividend will be recorded on March 5 and paid on March 18, 2021. Due to strong operating performance, cashflows and balance sheet, no DRP plan was announced. It will be imputed by 25% for NZ investors.

On March 2, 2021, the stock was trading at NZ$28.500, up by 0.67%, at the time of writing this copy.

PGG Wrightson Limited (NZX:PGW)

This full-service offering company supplies whole range of products to its customers in the agriculture sector. It’s a strong company, which recorded a strong earnings growth for 1H21 with a 41% growth in its net profits. Its net profits were NZ$18M and EBIDTA was up 21% at NZ$42M.

It has given an interim dividend of 12.000 cents per share to its shareholders to be recorded Tuesday and to be paid on March 24, 2021. The imputation amount will be 0.466 cent per share. It has been paying dividends in the past years. In 2020, it paid another dividend of 0.900 cents per share as interim dividend in March 2020.

On March 2, 2021, the stock was trading down at NZ$3.340 by 0.30% at the time of writing this copy.

Warehouse Group (NZX:WHS)

The leading retail group has six major brands attached to it with annual sales of over NZ$3 Billion. It announced a special dividend of 5 cents per share. The group reported stronger-than-expected performance in its trading update.

Also Read: The Warehouse Group (NZX:WHS) Appoints Rachel Tauleli As Non-Executive New Director

The Group’s strong performance in FY21 shows an increased consumer demand, and certain upgrades in the operations. So due to better performance and no dividend paid in the previous year, a special fully imputed dividend was paid in the month of February.

On March 2, 2021, the stock was trading down at NZ$3.340 by 0.30% at the time of writing this copy.

Scales Corporation Limited (NZX:SCL)

An agribusiness company, SCL has been performing well throughout its three segments in these uncertain times. The Group’s good performance was due to diversity of its businesses and also the teamwork of its employees. The Group declared a fully imputed interim cash dividend for FY20 of 9.5 cents per share and was paid on 15 January 2021.

In the half-year announcement, the Group declared that it had continued with its operations throughout the last disruptive year. The result announced on February 26 was profit oriented, pretty much consistent with the guidance provided earlier.

On March 2, 2021, the stock was trading down at NZ$ 4.590, at the time of writing this copy.

Michael Hill New Zealand Ltd. (NZX: MHJ)

This is a Jewelry retailer in North America, Australia, and New Zealand. It manufactures and sells specialised jewelry. Due to the Company’s good sales performance and its profits in line, it declared an interim fully imputed dividend of 1.5 cents per share. The record date for the dividend is March 11 and the dividend will be paid on March 26, 2021.

The Company plans to increase the dividend in the coming half of FY21 if the COVID-19-related conditions improve.

On March 2, 2021, the stock was trading at NZ$0.750 almost flat at the time of writing this article.

Allied Farmers Limited (NZX:ALF)
The Company, which operates in rural space and specialises in livestock trading, in its 1H21 results, reported an increase in previous year’s forecast for net profit from NZ$0.2M to NZ$0.4M. The Company reported an increase in net profits.

Also Read: Allied Farmers reports an increase in NPAT but lower profit before tax

In November 2020, ALF declared a dividend of 1.2 cents per share fully imputed as against 2 cents per share fully imputed declared in January 2020. This reflects that 2020 has been challenging for ALF, but due to its innovative strategies and team work, it was able to overcome that and have a good start to 2021.

On March 2, 2021, the stock was trading at NZ$0.550, up by 1.85%, at the time of writing.

 


Disclaimer
The website https://kalkinemedia.com/nz is a service of Kalkine Media New Zealand Limited (Kalkine Media), Company Number: 8107196. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK