- Amid the turbulent year marred by the coronavirus pandemic and low interest rate, investors have turned to dividend-paying stocks to ensure regular payouts.
- Poised for positive momentum for the next year, KPG announced NZ$99.8 million increase in its fair-value property portfolio.
- Backed by a diversified agribusiness portfolio, Scales Corporation delivers a record performance for 2020.
Last year, the fatal COVID-19 had freaked out almost the entire world. With nationwide lockdowns and restrictions, interest rates continued to slump, which made a sense to investors to look out for dividend-paying stocks for a steady income stream.
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That said, here’s a compilation of 5 NZX stocks that have declared solid dividends amid low-interest rate conditions.
Kiwi Property Group Limited (NZX:KPG)
First on the list is New Zealand’s prime property investment company, Kiwi Property Group Limited, which announced an NPAT of NZ$196.5 million for FY21.
Underpinned by stabilised economic conditions during the second half of the year, KPG’s fair value of its property portfolio increased by NZ$99.8 million.
The Company will pay a final dividend of 2.95 cps on 24 June 2021.
On 17 June, at the time of writing, Kiwi Property Group was trading at NZ$1.185, up by 1.28%.
New Zealand’s leading healthcare provider, Oceania Healthcare Limited, witnessed strong growth and performance against the challenging backdrop of the pandemic.
The sales of both its independent units as well as care suites were on a rise. As a result, the Company recorded an EBITDA of NZ$56.2 million for the 10-month period ended 31 March 2021.
Moreover, because of significant capital expenditure, OCA’s total assets jumped 22% to NZ$1.9 billion. It has announced 2.1 cps as a final dividend to be distributed on 22 June this month.
On 17 June, at the time of writing, Oceania Healthcare was trading at NZ$1.51, down by 0.66%.
Ryman Healthcare Limited (NZX:RYM)
Providing retirement living across the country, Ryman Healthcare Limited announced a final dividend of 13.6 cps for the full year ended 31 March 2021, which will be paid on 18 June this month.
Despite bearing the brunt of the COVID-19 pandemic during the initial months of 2020, the Company has reported an IFRS profit of NZ$423.1 million, up 59.8%, owing to investment property revaluations.
With a constant increase in demand for its aged care, RYM witnessed 97% occupancy in its elderly care section.
On 17 June, at the time of writing, Ryman Healthcare was trading at NZ$13.09, up by 0.31%.
Argosy Property Limited (NZX:ARG)
Another company from the real estate space is Argosy Property Limited.
The Company’s resilience has helped Argosy Property to steer through the testing times of the pandemic. As a result, its property portfolio position is well placed with an increase of 8.1% in its net property income amounting to NZ$108 million for FY21.
Moreover, ARG hugely benefited from the divestment of its Albany Lifestyle Centre. On 23 June, the Company will pay a Q4 dividend of 1.613 cps.
On 17 June, at the time of writing, Argosy Property was trading at NZ$1.56, down by 0.32%.
Scales Corporation Limited (NZX:SCL)
Topping off our list is Scales Corporation Limited, the Company which boasts a diversified agribusiness portfolio.
Backed by a strong growth in its food ingredients division as well as deriving the benefits of a diversified business strategy, SCL posted a power-packed revenue of NZ$470.7 million for FY2020. Its underlying EBITDA stood at NZ$53.9 million as compared to the previous year's NZ$52.7 million.
It will pay a final dividend of 9.5 cps on 9 July this year.
On 17 June, at the time of writing, Scales Corporation was trading at NZ$4.84, down by 0.21%.