Companies are often affected by market trends and fluctuations. Declaration of dividends attracts the investors’ attention and projects the sound financial health of a company. Dividends often portray the strength of a company and creates demands for its stocks.
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As the name suggests, dividend yield measures how much dividend amount a company pays to its shareholders with respect to its stock price. A slight change in the stock price greatly affects the dividend yield. If the stock decreases, the yield rises and vice versa.
Also, the dividend yield can change daily, whereas a stock dividend is usually declared quarterly, half-yearly or on an annual basis.
Let us take a glimpse at the NZX listed stocks brimming with high dividend yield.
Air New Zealand Limited (NZX:AIR)
NZX-listed Company Air New Zealand, Air New Zealand Limited, released its interim results ended 31 December 2020.
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As a result of the adverse effects of COVID 19, AIR announced $185 million as a loss before other significant items and taxation for the half-year period ended 31 December 2020 as compared to $198 million on pcp. Further, there was a decline of 59% in the group operating revenues amounting to $1.2 billion in the said period. This was because of the small number of international passengers and NZ’s 2nd lockdown in August 2020. However, its cargo revenues were up 91% in the past six months.
Further, the airline had to decrease the operating costs owing to the pandemic. As a result, its operating costs were low 58% on pcp at 65% less capacity and the Group will continue to operate on reduced costs.
Dame Therese Walsh, Chairman, AIR, stated that despite cargo and domestic operations performing fairly, the airline continues to face a financial crunch owing to the pandemic. Hence, the Group will not be declaring any interim dividend for FY21. Also, the Chairman thanked all the shareholders for their unrelenting and sustained support in these tough times.
Air New Zealand Limited’s dividend yield on 25 February 2021 stood at 9.6%.
On 26 February 2021, at the time of market close, AIR stock was down by 0.31% at $1.59.
SkyCity Entertainment Group Limited (NZX:SKC)
NZ’s leading entertainment jumbo, SkyCity Entertainment Group Limited had recently declared half-yearly results ended 31 December 2020.
It has reported a revenue of $449.9 million and NPAT of $78.4 million for 1H FY21.
Further, the Company saw a shift in management roles. Julie Amey was chosen as the CFO w.e.f. 1 May 2021.
The Company will not be declaring interim dividends for FY21 owing to its recent fluctuations and aims to have a steady growth in 2021.
On 26 February 2021, at the time of market close, SKC stock was up by 1.00% at $3.04.
Spark New Zealand Limited (NZX:SPK)
Technology giant Spark New Zealand Limited recently delivered balanced H1 FY21 results ended 31 December 2020, amid the pandemic.
There was a climb of 0.4% in EBITDA, resulting in $502 million on pcp. The cash flows saw a considerable increase of $113 million in the said period, up 126% on H1 FY20. However, the Company saw a decline by 11.4% in NPAT, amounting to $148 million.
The Company has announced a dividend of 12.5cps for H1 FY21, payout to be done on 9 April 2021.
Jolie Hodson, Spark CEO, asserted that the Company is focused on carrying out future investments and entering new markets and has confirmed 25 cps as dividend guidance for FY21.
Spark New Zealand Limited’s dividend yield noted on 26 February 2021 stood at 7.11%.
On 26 February 2021, at the time of market close, SPK stock was down by 2.55% at $4.59.
Kiwi Property Group Limited (NZX:KPG)
NZ’s real estate giant, Kiwi Property Group Limited, had released its half-yearly results ended 30 September 2020 on 23 November 2020.
Clive Mackenzie, CEO, Kiwi Property, opined that the farsighted and prudent measures taken by the Company in the early financial year, helped the Company to sail through the challenging times of COVID 19.
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The Group saw a climb of 47.5% in the NPAT, resulting to $54.2 million on pcp. On the other hand, operating PBT went marginally down by $5 million, amounting to $55.2 million in the said period.
Further, the Group undertook noteworthy measures to minimize the effect of the pandemic by undertaking 20% markdown in payouts by the Board and executive.
After the normalisation of the business operations, the Company announced an interim dividend payout of 2.2cps set at 95% of KPG’s AFFO, payment of which was done on 18 December 2020.
Kiwi Property Group Limited’s dividend yield on 25 February 2021 stood at 2.5%.
On 26 February 2021, at the time of market close, KPG stock was down by 0.42% at $1.195.
Contact Energy Limited (NZX:CEN)
NZ’s sustainable energy company, Contact Energy Limited, had recently declared its interim results ended 31 December 2020.
The Company saw substantial growth in its statutory profit at $78 million, up 32% on pcp. Its EBITDAF climbed by $25 million to $246 million, up 11% on pcp. Also, operating free cash flow rose to $157 million in the said period.
Contact CEO, Mike Fuge, stated that despite the trying conditions owing to the pandemic, the Company had declared a steady performance and has declared an interim dividend of 14 cps to be imputed upto 9 cps, payment of which will be done on 30 March 2021.
Contact Energy’s dividend yield on 26 February 2021 stood at 7.09%.
On 26 February 2021, at the time of market close, CEN stock was down by 0.44% at $6.840.
Meridian Energy Limited (NZX:MEL)
NZ’s largest electricity generator and retailer had recently declared its interim results for the year ended 31 December 2020.
The Group is focused on protecting and sustaining its environment and aims to combat climate change.
The Company’s operating cash flows amounted to $187 million for 1H FY2021, down 30% on pcp. NPAT increased by 19% and stood at $227 million in 1H FY2021 on pcp.
The Company announced 5.70 cps as an interim ordinary dividend, 86% imputed, payment of which will be made on 16 April 2021 and remains the same as on 1H FY20. It is considering Dividend reinvestment plan (DRP) for its shareholders in the future.
Meridian Energy Limited’s dividend yield as on 26 February 2021 stands at 4.50%.
On 26 February 2021, at the time of market close, MEL stock was up by 2.52% at $5.7.