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- Big-ticket companies announce big-dividend payouts.
- Most of these companies beat the COVID-19 blues.
- All these are going ex-dividend in March.
The dividend payouts cycle seems to have made a comeback in New Zealand. After the slash in dividends last year due to COVID-19-induced restrictions, the dividend-dependent investors can now take a sigh of relief as many companies have resumed paying dividends. In the month of March, several big ticket as well as small companies are going ex-dividend.
Investors have been looking for the best companies for dividends as they provide the safest route for them. Let’s have a look at some of the companies that have announced attractive dividends in the month of March.
Freightways Limited (NZX:FRE)
This Company, which is engaged in package & business mail services, announced an interim dividend of 15.500 cents per share with the imputation value of 6.028 cents per share. Its ex-dividend date is March 11, and the payment date is April 1, 2021.
Even though the Company had paid dividends in 2019 and 2018, it cut back on its dividend payment during the pandemic to preserve its cash flow. However, with the strong trading results of the first half of 2021, FRE hopes to continue the growth momentum as it has well-established systems and processes in place should new lockdowns reimposed in New Zealand and Australia.
On March 9, 2021, the stock was trading up by 0.47%, at NZ$10.750, at the time of writing this article.
Contact Energy Limited (NZX:CEN)
The sustainable energy company announced an interim dividend of 14 cents per share to be paid on March 30, 2021. The record date for the dividend is March 11. It’s a cash-rich utility company, which rewards its investors with good dividends, and even during the restrictions imposed by COVID-19-related lockdowns, it continued two dividends in 2020 to the shareholders. In fact, its final dividend for 2020 was 26 cents per share and interim dividend was 16 cents per share. Compared to that, this year’s dividend payout is lower, reflecting an impact on cash flows.
On March 9, 2021, the stock was trading up by 1.50%, at NZ$ 6.780, at the time of writing this article.
Chorus Limited (NZX:CNU)
It’s a large telecom company, which caters to most of the fixed line needs of New Zealanders. The company has a strong liquidity position, therefore, it announced an interim dividend of 10.500 cents per share as payout for its shareholders. The imputation will be at 4.083 cents per share and will be recorded on March 15, 2021. CNU has been paying dividends throughout. In 2020, it paid both interim and final dividends. In 2019 also, it paid the same amount as dividend, and in 2018 too, it rewarded its shareholders with dividends.
On March 9, 2021, the stock was trading down by 2% at NZ$7.780, at the time of writing this article.
Mercury NZ Limited (NZX: MCY)
The electricity generation and retailing company is a big utilities company, which announced an interim dividend payout of 6.800 cents per share. Its imputation value stands at 2.644 cents per share and will be recorded on March 11, 2021.
COVID-19 did not impact the cash flows of the Company, therefore, it continued to pay dividends (interim and final) in the same range in 2020. The dividends paid in 2019 and 2018 were in the same band.
On March 9, 2021, the stock was trading down by 3.31%, at NZ$5.995, at the time of writing this article.
Spark New Zealand Limited (NZX:SPK)
The official telecom operator of New Zealand Telecom offers services such as mobile, fixed, internet, pay television, and cloud computing. It has three segments, retail, wholesale, and digital.
The Company announced a dividend of 12.500 cents per share to be imputed at 4.816 cents per share. Even though the dividend will be paid on April 9, the record date for the dividend is March 18, 2021. This is another cash-rich company that has been paying dividends during the COVID-19 restrictions, also during the year 2020, and consistently through 2019 and 2018. It has also rewarded its shareholders with special dividends.
On March 9, 2021, the stock was trading down by 1.30%, at NZ$5.450, at the time of writing.
Colonial Motor Company Limited (NZX:CMO)
This is a Wellington-based Company, which owns motor dealerships throughout the country. It has more than 12 dealerships, selling mostly Ford cars.
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It announced a dividend of 15.000 cents per share with the imputation value of 5.833 cents per share. The record date is March 18 and the payment date is March 29, 2021. The Company paid the only dividend in the year 2020, and interim and final dividends in 2019 and 2018.
On March 9, 2021, the stock was trading up by 0.66%, at NZ$ 9.150, at the time of writing this article.