Look at 5 dividend-paying stocks on the NZX

Highlights

Some cash-rich NZ companies continued to pay dividends during the COVID-19 pandemic.

Some companies suspended dividend payments.

These companies are stars of dividend-paying companies.

Anyone looking for additional income should opt for dividend-paying stocks. Usually, the companies that chase growth don’t pay dividends, but that may not be the case for all stocks. To the investors looking for a consistent source of income, dividends can be a good source of income, If the markets are volatile, investors chase income growth through dividend payments. Let’s look at five dividend-paying companies on the NZX.

Westpac Banking Corporation (NZX:WBC ASX:WBC)

WBC is one of the biggest banks operating throughout Australia and New Zealand. It rewarded the shareholders with a dividend of 58 cps with an imputation credits of 7cps. The bank paid its last dividend on 25 June 2021. Historically, the Company has been paying good dividends, but in 2020, it paid one final dividend of 80cps and one interim dividend in 2019.

Also Read: Will Westpac's sale of its NZ business result in other Kiwi banks to follow suit?

Australia and New Zealand Banking Group Limited (NZX:ANZ)

This is also one of the biggest banks that has global operations. The bank has a good cash-flow situation. The bank reported strong performance for 1HFY21. It has a strong home loan market which reflects in its bottomlines. It gave a dividend payout of 70cps to its shareholders as an interim dividend, which was paid on 1 July 2021.

Genesis Energy Limited (NZX:GNE)
GNE is an energy company, which is primarily into retailing. The Company has been reporting profits due to a hike in demand for retail and wholesale segments. It paid an interim dividend of 8.765 cps on 1 April 2021. GNE has been resilient in times of the pandemic and rewarding its shareholders with dividends in 2020.

Spark New Zealand Limited (NZX:SPK)

SPK is a telecom major that continued to reward its shareholder during the COVID-19 pandemic. The Company has good cash flows and because of that, announced a dividend payout of 12.500 cps as interim dividend. Its imputation credits were 4.816 cps.

Also Read: Spark Install 5G In Christchurch City Centre

Vector Limited (NZX:VCT)

VCT has been growing in the city of Auckland. It saw an upsurge in gas connections in the city in the first half of FY21.The Company reported a strong performance in the same period and also has a strong dividend-paying history. It announced a dividend payout of 8.25 cps, with imputation at 10.5% paid on 8 April 2021.

Do Read: Is NZ’s Telecom Sector All Set To Experience Growth? 5 Related Stocks- CNU, SPK, VTL, TLS, VCT

Bottomline: Dividends are a good way of keeping investors interested in the company. Some companies pay good payouts because they have good cash-flow situation and don’t have to invest a lot in growth plans. In other words, they are mature companies looking to hold their shareholders by offering attractive dividends.