Do These 6 Dividend Stocks Have Robust Growth Prospects- HLG, WHS, NWF, MEL, CDI, FCT?

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Dividends play a significant role in reflecting a company’s sound financial outlook and performance. These payouts are bounty offered to the shareholders for their belief in the Company. Also, the dividend amount act as an alluring incentive for the prospective investors.

With the resurgence of the economy amid the vaccination rollout programme across the nation, many NZ companies have been declaring dividends, which could further motivate investors to keep their faith intact in the Companies during tough circumstances.

Moreover, due to the lockdowns and restrictions, many companies like the retail sector based switched to innovative trends like buy now pay later, contactless shopping, digital payment gateways, online shopping platforms to attract more and more customers. This has resulted in the increased sales of the companies, which led towards the dividend distribution.

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Let us now quickly go through the 6 NZX stocks that will be paying dividends in April and May and see if they have robust growth prospects.

Hallenstein Glasson Holdings Limited

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In its unaudited results for the half-year period ended 1 February 2021, Hallenstein Glasson Holdings Limited (NZX:HLG) recorded impressive results. It saw a 13.6% increase in its group sales i.e. $181.98 million on pcp. NPAT jumped to $19.84 million during the period. The balance sheet remained robust, with inventories well placed.

However, because of increased freight costs arising due to shipping delays, the Company’s gross margin on sales was reduced to 56.5% as compared to 58.3% on pcp.

HLG has declared a fully imputed interim dividend of 23.0 cps, which will be paid on 16 April 2021.

MUST READ: Kiwi Retail Sector And 5 Related Stocks- WHS, HLG, BGP, KMD, MHJ

On 6 April, at the time of writing, Hallenstein Glasson Holdings was trading up by 1.33% at $7.600.

The Warehouse Group Limited

In its pleasing FY21 H1 results, The Warehouse Group Limited (NZX:WHS) witnessed a 7.4% increase in its Group sales, amounting to $1,808.3 million. The Company saw a tremendous increase of 140.2% in its adjusted NPAT, amounting to $111.0 million during the said period. All its brands, including The Warehouse, Noel Leeming, Warehouse Stationery and Torpedo7 reported remarkable operating profits.

WHS’ cash on hand stood at $183.6 million, and total liquidity (consisting of cash and available facilities) was at $513.6 million towards the end of the reporting period, reflecting the Group’s robust financial performance and effective inventory management.

WHS will declare 13.0 cps as interim dividend on 22 April 2021.

On 6 April, at the time of writing, The Warehouse Group was trading down by 0.54% at $3.710.

NZ Windfarms Limited

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In its recent announcement on financial results, NZ Windfarms Limited (NZX:NWF) reported $6.9 million as its total revenues for HY21. NAPT and EBITDAF stood at $0.32 million and $3.2 million, respectively. The Company noted $3.1 million as operating cash flows during the half-year period, which reflected NZ Windfarms’ efficient measures on cost control and capital management. It has maintained EBITDAF guidance for FY21 between $5.7 million to $6.3 million.

NWF will pay 0.15 cps as an unimputed interim dividend on 9 April 2021.

On 6 April, at the time of writing, NZ Windfarms was trading flat at $0.200.

Meridian Energy Limited

Meridian Energy Limited (NZX:MEL, ASX:MEZ) updated that its monthly report for February 2021. The Company’s national hydro storage declined to 70% from 80% of the historical average from February 2021 to 16 March 2021. Its total monthly inflows for February 2021 were recorded at 54%.

Under Genesis swaption, the Company made calls during the months of February and March 2021. Moreover, its national demand for electricity stood at 4.6%, low on pcp. However, MEL’s retail sales for NZ during the month were reported at 11.6%, higher than that of February 2020.

On 16 April 2021, MEL will declare an interim dividend of 5.7 cps to its shareholders.

On 6 April, at the time of writing, Meridian Energy was trading down by 7.62% at $5.155.

CDL Investments New Zealand Limited

CDL Investments New Zealand Limited (NZX:CDI) maintained a stable front, with PAT of $30.1 million in its annual report of 2020 amid the challenging economic conditions. Its property sales & other income stood at $88.8 million during the said period of one year.

The Company saw an increase in its shareholders’ funds from $235.5 million in 2019 to $257.1 million in 2020. Moreover, its total assets climbed to $265.0 million as compared to $240.7 million on pcp.

CDI has declared 3.5 cps as the final dividend to paid on 14 May 2021.

On 6 April, at the time of writing, CDL Investments New Zealand was trading flat at $1.085.

F&C Investment Trust PLC

F&C Investment Trust PLC (NZX:FCT) financial results were impacted by the ongoing crisis caused by the deadly pandemic around the world. Its share price total return was recorded at 4.6% for 2020.  

For the same period, NAV was reported at 12.3%, faintly less than the Company’s benchmark index of 12.4% total return. Thus, reflecting the Company’s resilience towards the challenging economic conditions.

It is marked that FCT’s share price climbed to 787.0p from 765.0p during the year-end.

FCT has declared a final dividend of 3.4 cps payable on 13 May 2021.

On 6 April, at the time of writing, F&C Investment was trading flat at $15.690.

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


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