- Investors wait for the earnings season as firms announce their upcoming dividend plans.
- Dividends provide investors with regular income.
- Contact Energy, Mercury, Fletcher Building are few stocks that have declared their dividend payments.
Many publicly listed firms release their financial results during the earnings season. As a result, it's an important period for the investors looking for broker opinions on a company's financial performance and for an assessment of the stock's intrinsic worth. While few companies have already revealed their results, some are yet to disclose their numbers.
The earnings season is also an exciting time for the investors who are on the lookout for dividend stocks as firms also reveal their plans for dividend payments ahead. A dividend is a share of a company’s earnings that it pays to its shareholders.
Here’s a look at 5 NZX stocks that have revealed their upcoming dividend payouts for the financial year.
Contact Energy Limited (NZX:CEN)
Contact Energy, an NZ-based sustainable energy company, released its FY21 results on 16 August. The firm delivered solid results after overcoming many challenges around reliable gas supply, probable departure of large energy users, and low rainfall in hydro catchments. It spent $177 million on capital investments during the period.
The Group declared a final dividend of 21cps due to be paid on 15 September 2021. This will take the total dividend for the full year to $272 million.
On 18 August, CEN ended the trading session at $8.07, up 0.25% from its previous close.
Mercury NZ, an electricity generator and retailer, disclosed its FY21 results on 17 August. The Group delivered a strong financial performance in FY21 amid COVID-19 challenges. It announced two big acquisitions, Tilt Renewables and Trustpower, to expand the company's scale and competencies.
MCY will pay a final dividend of 10.2cps on 30 September 2021, taking the total FY21 dividend to 17cps (+7.6% on FY20).
Mercury expects EBITDA of $590 million with stay-in-business capex of $70 million for FY22.
On 18 August, MCY ended the trading session at $6.64, down 0.15% from its previous close.
Fletcher Building, distributor and manufacturer of building products, released its FY21 results on 18 August. FBU reported a rise in all its key financials in FY21 over FY20 and continued to make targeted investments to deliver on its strategy.
Fletcher will pay a final dividend of 18cps, which will be paid on 17 September 2021. This will take the total dividend for FY21 to 30cps.
The Group is well placed for growth amid a strong balance sheet and favourable market outlook.
On 18 August, FBU ended the trading session at $7.63, down 1.55% from its previous close.
Spark New Zealand, an NZ telecom giant, disclosed its FY21 results on 18 August. Spark witnessed strong underlying growth in its core markets and disciplined cost management to post growth in EBITDA. However, the Group’s NPAT dropped due to accelerated 5G rollout and datacentre capacity expansion.
Spark declared a dividend of 12.5cps for H2 FY21, bringing the total dividend to 25cps for FY21.
On 18 August, SPK ended the trading session at $4.755, up 0.53% from its previous close.
Ebos Group, a marketer and distributor of pharma, healthcare, and medical products, revealed its FY21 results on 18 August. The Group reported double-digit earnings growth and a record profit for FY21, with a continuous strong performance from both animal and healthcare segments.
The Group declared a final dividend of 46cps due to be paid on 24 September 2021, taking the total dividends declared for FY21 to 88.5cps.
EBO expects further growth with elevated capital expenditure for FY22.
On 18 August, EBO ended the trading session at $32, up 1.91% from its previous close.
Dividend investing helps investors in getting regular income from their investments. Hence, dividend stocks are attractive to investors.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)