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Highlights
- Dividends are payments made by companies to their shareholders from the income generated by the business.
- Spark paid a dividend of 12.5cps in the second half of FY21.
- Westpac will pay a final dividend of 60cps on 21 December 2021.
Dividend stocks are particularly attractive to investors because they provide them with a return on their investment often on top of appreciation from stocks. Investors can accumulate these dividend payments as income or use this dividend income to reinvest in their portfolios.
However, dividend payments are not guaranteed and paying dividends might show that the company is not reinvesting the money in itself, which could slow down its growth.
On this note, let’s walk you through these 3 NZX-listed dividend stocks with high dividend yields that can be considered for your portfolio.
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Spark New Zealand Limited (NZX:SPK; ASX:SPK)
Spark announced its annual meeting results for 2021 on 5 November. Roaming revenues hurt Spark's FY21 performance, which added to slower overall growth in the broadband and prepaid sectors.
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However, COVID-19 headwinds had little effect on the Group's main operations. Revenue from the cloud, security, and service management increased by 5.5%, owing to increased demand from the enterprises trying to digitise and change.
Spark paid a dividend of 12.5cps in the second half of FY21, bringing the total payment to 25cps.
On 25 November, at the time of writing, SPK was trading flat at $4.42.
Genesis Energy Limited (NZX:GNE; ASX:GNE)
Genesis announced that Nigel Clark, its Chief Operating Officer, and James Magill, its Chief Digital Officer, will be stepping down from their roles to move back to Australia. While James will be leaving in February 2022, Nigel has affirmed to stay until the end of FY22.
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Genesis made a final dividend payment of 8.8cps on 8 October 2021, taking the total dividend to 17.4cps for FY21.
On 25 November, at the time of writing, GNE was trading at $2.935, up 0.17%.
Westpac Banking Corporation (NZX:WBC; ASX:WBC)
Westpac announced on 18 November that it would issue Tier 2 subordinated notes on Tuesday. The issuance of notes will almost certainly increase Tier 2 regulatory capital.
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This would meet WBC's regulatory requirements while preserving the bank's diversity of sources and types of capital funding.
Westpac had paid an interim dividend of 58cps for the half year ended 31 March 2021. It will pay a final dividend of 60cps on 21 December 2021.
On 25 November, at the time of writing, WBC was trading at $22.86, down 0.17%.
Bottom Line
An investor must consider both growth and income prospects of a company and how they match with his/her needs and goals before investing in a dividend stock.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)