NZX stocks going ex-dividend in January

Highlights

• Ex-dividend dates are very important for investors
• These are dates before which investors must buy shares of a company to become eligible for the next dividend
• SCL, TRA,  TWR, and TCL have their ex-dividend dates in January 2023

Investors looking for a secure source of income invest in dividends. They generally opt for dividend-paying stocks as they remain resilient even during rocky market conditions and help reduce overall portfolio risk.

Ex-dividend dates are significant in a dividend cycle, as these are the dates before which investors can become eligible for a dividend if they buy shares of a company before the date.
In other words, if an investor buys a share a day before the ex-dividend date, they become eligible for the upcoming dividend.

There are some ex-dividend dates to watch out for in January 2023. Let’s see some NZX-listed companies with upcoming ex-dividend dates.

Scales Corporation Limited (NZX:SCL)

Scales Corporation is a diversified agribusiness company with three segments: logistics, horticulture, and food ingredients. The company operates across geographies and is one of the older companies in New Zealand. It declared its interim dividend of 6 cps to be paid on 16 January 2023. The ex-dividend date for the same was 4 January 2023. The imputed credits attached to the dividend are 2.33 cps, and the yield on the dividend works out to be 5.3%. 

As per the company website, SCL has a consistent dividend-paying history with approximately two dividends each year.

On 6 January 2023, the stock was trading down 0.75% at NZ$3.980 at the time of writing.

Turners Automotive Limited (NZX:TRA)

TRA delivers services in automotive retail, finance and insurance, and debt management. These services are provided through a number of its brands like Oxford Finance, Autosure, DPL Insurance Limited, Turners Group NZ, and EC Credit Control. The Company delivered sound HYFY23 results (announced on 21 November 202) with revenue growth of 11% over the prior comparable period (pcp), and net profit after tax improving by 1% over pcp. TRA also declared an interim dividend of 5 cps with the ex-dividend date set on 11 January 2023. The imputed credits for the dividend are 1.9 cps, and the payment date is 26 January 2023.

Turner rewarded its shareholders with a final dividend for FY22 of 23 cps, an increase of 15%. In its 1HFY23 results, the company also revealed that due to NPBT being projected to be slightly higher in FY23, it expects the final dividend to be 23 cps, representing a gross yield of 8.9% per annum based on the NZ$3.60 share price.

On 6 January 2023,  the stock of TRA was trading flat at NZ$3.30 at the time of writing.

Tower Limited (NZX:TWR)

Tower Company is a financial company engaged in the business of insurance. It functions as a key general insurer in the private insurance sector across the Pacific Islands, and New Zealand. The company markets a range of insurance products, including business, travel, home, and car insurance. TWL is a dividend-paying company that declared its final dividend of 4 cps with zero imputation credits.
The dividend will be paid on 1 February, and the ex-dividend date is 17 January. As per the company, in FY22, dividends were paid in June and January.

On 6 January 2023, the stock was trading up 1.38% at NZ$ 0.735 at the time of writing.

City Of London Investment Trust Plc (NZX:TCL)

 The City of London Investment Trust is one of the UK’s oldest investment trust. It was incorporated on 26 September 1861. It invests in companies with the main intention of boosting the long-term capital of investors. According to the company website, it invests in multinational companies listed on the London Stock Exchange. It has a conservative management style of working and attaches importance to declaring dividends. Recently, it declared a final dividend of 5 pence with the ex-dividend date on 26 January. The payment date for the dividend is 28 February, and there are no imputation credits on the dividend.

It has a consistent dividend-paying history and declared four dividends last year.

On 6 January 2023, the stock was trading up 0.76% at NZ$ 7.940 at the time of writing.