NZM, SCL, TRA, BIT: 4 dividend-paying shares under $5

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NZM, SCL, TRA, BIT: 4 dividend-paying shares under $5

 NZM, SCL, TRA, BIT: 4 dividend-paying shares under $5
Image source: © 8vfand | Megapixl.com

Highlights

  • Investors are witnessing an environment of persistently high inflation and rising interest rates.
  • Dividend stocks can help investors in inflationary times.
  • NZME, Scales, Turners Automotive and BIT are 4 dividend-paying stocks under $5.

 

Investors are going through tough times with extreme uncertainty about the future because of rising interest rates and inflation expectations.

Dividend stocks are considered to be a good hedge against inflation and can play an important role in earning returns for an investor’s portfolio. They can provide income protection by offering a steady income stream.

Here is a look at the performance of 4 NZX stocks under $5 that are due to pay their dividends.

Source: © Paulcowan | Megapixl.com

 

NZME Limited (NZX: NZMASX: NZM)

Media and entertainment company NZME reached 100K paid digital subscriptions in 3 years.

On 20 June, NZM declared a special dividend of 5cps, equaling $9.7 million and an aggregate special dividend of $15 million. It will make its dividend payment on 12 July. It paid a total dividend of 8cps in 2021. 

Shares of NZM declined 3.79% in trading on Wednesday to close at $1.27.

 

Scales Corporation Limited (NZX:SCL)

Diversified agribusiness company Scales generated pleasing increases in both underlying EBITDA and underlying NPAT in 2021.

Scales will make a final dividend payment of 9.5cps on 8 July 2022. The Group expects its earnings to match that of last year’s.

Shares of SCL remained flat on Wednesday to close at $4.31.

 

Turners Automotive Limited (NZX:TRA)

TRA delivered record results in FY22 with the group demonstrating resilience and strong growth credentials. Its market share continued to increase in Auto Retail and its debt load is returning slowly.

The Group made a record dividend payment of 23cps in FY22. It will pay an interim dividend of 7cps on 28 July 2022.

Shares of TRA declined 3.79% in trading on Wednesday to close at $1.27.

 

The Bankers Investment Trust Plc (NZX:BIT

A global investor in listed companies, BIT’s unaudited net asset value per share stood at 107.4 pence (calculated as per the AIC formula) at the close of business on 4 July.

BIT is due to pay an interim dividend of 0.578 pence on 31 August 2022.

Shares of BIT declined 0.51% in trading on Wednesday to close at $1.94.

 

Bottom Line

Dividend stocks may be a great source of passive income and are relatively lesser risky than other stocks while helping in fighting inflation. However, proper due diligence must be done before investing in the stocks.


(NOTE: Currency is reported in NZ Dollar unless stated otherwise) 

 

 

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