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Highlights
- Dividend stocks are stocks of well-established companies that pay regular income to their stockholders.
- These stocks can come as rescue option for investors looking for safe havens.
- ANZ, GNE and HGH are the stocks with highest-paying dividend yields.
Russia’s invasion of Ukraine has posed a substantial threat to the global economy, resulting in increased volatility in financial markets, increased inflationary concerns and an uncertain economic growth outlook. Subsequently, investors are looking for safe heavens that can survive the present storm. Dividend stocks can come as rescue options in such a scenario.
Dividend stocks are stocks of well-established companies that pay regular income to their shareholders. Large and mature firms pay good dividend yield.
Here we have compiled a list of the top 15 dividend stocks on NZX 50 with high dividend yields (as of 5 April 2022).
Image source: © 2022 Kalkine Media®, Data source- EODHD/Others as of 5 April 2022
Prominent electricity, natural gas and LPG provider in NZ, Genesis, has a market cap of NZ$2.98 billion. The stock has given a YTD return of -1.05%.
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GNE delivered a strong H1 FY22 with a 63% rise in net profit on pcp to NZ$84.7 million in the period. The Group expects EBITDAF to be between NZ$430 to NZ$440 million for FY22.
The Group paid an interim dividend of 8.7cps on 1 April 2022 and has a dividend yield of 8.1%.
Financial services provider, Heartland Group has a market cap of NZ$1.33 billion. The stock has given a YTD return of -10.71%.
The Group saw a 7.8% rise in its NPAT to NZ$47.5 million and delivered a 13.9% annual growth in lending for the H1 ended 31 December 2021 compared to pcp.
HGH paid an interim dividend of 5.5cps for the H1 2022 on 16 March 2022.
On 1 April, HGH also announced plans to acquire Australian business of livestock finance provider StockCo and is likely to be completed by May 2022.
HGH has a dividend yield of 7.7%.
Banking and financial services provider, ANZ, has a market cap of NZ$82.29 billion. The stock has given a YTD return of -0.61%.
The Group’s revenue within ANZ’s markets business for October stayed softer, but successive months were in line with revenue trends of FY21. ANZ’s net interest margin was also down by 8bps for the quarter ended 31 December 2022.
ANZ also began a new JV with a prominent European payments provider Worldline on 1 April. ANZ paid a total dividend of 142 cents per share for FY21 and has a dividend yield of 7.5%.
Top telecom service provider in NZ, Spark, has a market cap of NZ$8.69 billion. The stock has given a YTD return of 2.88%.
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Spark posted a strong H1 FY22 performance, delivering a 5.2% growth in revenue to NZ$1.89 billion and a 7.6% growth in EBITDA to NZ$0.53 billion in the period on pcp. The Group appointed Aliza Beckett on the post of Strategy Director and will join from June2022.
The Group will pay an H1 FY22 dividend of 12.5cps on 8 April 2022. SPK has a dividend yield of 7.5%.
Australia’s first bank and financial services provider, Westpac, has a market cap of NZ$90.91 billion. The stock has given a YTD return of 13.52%.
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The Group posted an 80% rise in its net profit to NZ$1.82 billion and a 1% rise in cash earnings in Q1FY22 compared to the quarterly average in 2H21. WBC appointed Yianna Papanikolaou as its Chief Transformation Officer in March and will begin her tenure from late April.
WBC’s strong earnings enabled it to raise full-year dividend payments to 118cps and has a dividend yield of 7.1%.
A construction-based firm, Fletcher Building, has a market cap of NZ$4.94 billion and a YTD return of -15.28%.
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Recently, the Company had announced appointing a new Chief Information Officer, Joe Locandro, who has held several roles in a similar capacity for over two decades.
FBU will distribute an interim dividend of 18.0 cps on 7 April and has a dividend yield of 6.9%.
- Trustpower Limited (NZX:TPW)
New Zealand’s leading power company is Trustpower. It has a market cap of NZ$2.22 billion and a YTD return of -3.8%.
The Company has announced that all the requisite conditions had been met regarding the sale of its retail business to Mercury Limited and the final settlement was likely to take place on 1 May. Also, the generation and commercial sales business will be given a new name, Manawa Energy Limited, upon the completion of the said sale.
TPW paid an interim dividend of 17cps on 3 December 2021 and has a dividend yield of 6.7%.
- Kiwi Property Group Limited (NZX:KPG)
Real estate business Kiwi Property Group has NZ$1.70 billion as its market cap and a YTD return of -9.21%.
A few days ago, the Group disclosed the appointment of its new GM, People, Joanna Harris. She would take charge of her role from 11 April onwards.
KPG has dividend guidance of 5.3cps for FY22 and has a dividend yield of 6.4%.
The supplier of transport fuel across the country, Z Energy, has a market cap of NZ$1.94 billion and a YTD return of 5.35%.
A few days back, Z had disclosed that its shareholders had voted in favour of the Scheme of Arrangement wherein all its shares will be purchased by Ampol Holdings NZ Limited. However, the said scheme is subject to approval from the OIO, i.e., the Overseas Investment Office, whose verdict is likely to be out by mid-April.
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Z Energy paid an interim dividend of 7cps on 8 December 2021 and has a 6.3% as its dividend yield.
- NZX Limited (NZX:NZX)
The national stock exchange, NZX Limited, has a market cap of NZ$0.44 billion and a YTD return of -21.55%.
The Company recently declared issuing ordinary shares to all its employees who have joined or have become permanent employees of the Company since February last year and are still working in the Company. Also, senior management has been issued performance rights as per the NZX’s Long-Term Incentive Plan.
The NZX has paid a final dividend of 3.1cps on 10 March 2022, taking total dividends to 6.1cps for FY21. The NZX has a dividend yield of 5.9%.
CEN is an energy company that distributes and retails power in New Zealand. It is one of the biggest privately-owned utility companies with a market cap of NZ$6.28 billion and a YTD of -1.36%.
On 17 March, CEN announced the price at which shares were allotted under Contact’s Dividend Reinvestment Plan (DRP). The price fixed is NZ$7.8750. The shares were issued on 30 March 2022.
CEN paid an interim dividend of 14cps on 30 March 2022 and has a gross dividend yield of 4.38%.
CNU operates as a telecommunications infrastructure company. The firm engages in the provision of fixed line communications infrastructure services to retail service providers. Chorus has a market cap of NZ$3.29 billion with a YTD return of 1.81%.
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On 31 March, the company submitted its price-path compliance statement with the Commerce Commission. This is a regulatory requirement for fibre access services. The idea behind the price-path compliance statement is to confirm that foretold revenues are below the price path set by the Commerce Commission for a given period.
Chorus will pay an interim dividend of 14cps on 12 April 2022 and has updated its dividend guidance to 35cps for FY22, minimum 40cps for FY23 and a minimum of 45cps for FY24.
CNU’s gross dividend yield works out to be 5.3%.
- Scales Corporation Limited (NZX:SCL)
SCL engages in providing logistic services to the export sector. It operates through three segments: Food Ingredients, Horticulture and Storage & Logistics. SCL has a market cap of NZ$0.71 billion and YTD change of -10.36%.
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On 29 March in its annual report, SCL revealed its full-year FY21 performance. Its profit for the year was NZ$36.9 million, revenue was NZ$514.6 million, up 9%, and underlying NPAT was up 8%. Its performance was outstanding across all its divisions.
SCL declared dividend of 19cps during 2021 and is likely to declare a final dividend of 19cps in respect of FY21 in May. Scales has a gross dividend yield of 5.3%.
- Investore property Limited (NZX:IPL)
IPL is a real estate investment company engaged in investing in large-format retail property assets. IPL has a market cap of NZ$0.63 billion and YTD return of -11.79%.
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Recently, it announced a cash dividend of 1.97 cps, which was paid on 4 March. The dividend has imputation credits of 0.3377 cps. The board also confirmed that its annual guidance would be consistent with previous guidance and was targeting an annual cash dividend of 7.90 cps for FY22.
IPL has a dividend yield of 4.03%.
- Argosy Property Limited (NZX:ARG)
One of the largest diversified property investment vehicles in NZ Argosy has a market cap of NZ$1.17 billion and has a YTD return of -13.75%.
The Group paid Q3 dividend of 1.6375cps on 30 March with imputation credits of 0.119884cps attached to the dividend.
ARG has a dividend yield of 5%
Disclaimer: Dividend Yields have been taken from EODHD/Others
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)