What does above-5% dividend yield of these 5 NZX stocks indicate?

Summary

  • Dividend yield measures a stock’s annual cash dividends paid compared to the market value per share.
  • High-dividend yield stocks can be good investment alternatives in uncertain times.
  • NZX has many companies that are good dividend payers.

Dividend yield of a stock reveals the dividend income received by an investor compared to the present price of the stock. Dividend is a medium through which a company pays profits earned straight to the investors. Well-established and older firms with steady growth in profits are more likely to issue dividends than start-ups that need money to finance their growth plans.

Stock prices are sensitive to any dividend changes that are announced by the firm or are expected ahead due to any political/economic activity. Dividend yields might vary over the time due to market adjustments or dividend increases/cuts by the issuing company.

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High-dividend yield stocks can prove to be a good option in volatile times due to their good payouts. However, investors must check their dividend history and valuation of the company.

Amid this backdrop, let’s glance through these 5 NZX-listed stocks with above 5% yield.

Australia and New Zealand Banking Group Limited (NZX:ANZ, ASX:ANZ)

ANZ, one of the largest banks in operation in Australia and New Zealand, has a strong dividend payout history. The Group paid an interim dividend of 70cps on 1 July, twice the final dividend paid in FY20.

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On 19 July, the bank declared a share buyback of $1.5 billion worth of stocks. As a result, the Group possesses the financial capacity to make dividend payments and support its customers through share buyback.

On 3 August, ANZ last traded at $29.54, down 0.71% from its last close.

Chorus Limited (NZX:CNUASX:CNU)

Chorus, a telecom infrastructure provider, made a dividend payment of 10.5cps on 13 April.

GOOD READ: Which are the four hot NZX-listed telecom stocks?

In July, Chorus announced that the total fixed-line connections witnessed a decline of 16,000 to 1.34 million while total broadband connections fell by 1K to 1.18 million.

On 3 August, Chorus last traded at $6.28, up by 1.05% from its last close.

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property, an NZ-based firm that owns many properties across the country, made a cash dividend payment of 5.15cps in FY21 with a cash dividend for FY22 likely to be not lower than 5.3cps.  

DO READ: Are these 10 best NZX-listed real estate shares?

COVID-19 had an impact on the Group's activities, although the decline in property prices witnessed in March 2020 has been partly corrected. As a result, the company intends to rebalance its portfolio, execute its value creation strategy and expand its build-to-rent business.

On 3 August, Kiwi Property last traded at $1.17, up by 0.43% from its last close.

Contact Energy Limited (NZX:CEN)

Contact Energy, NZ's most significant electricity generation and distribution firm, paid an interim dividend of 14cps on 30 March 2021.

The firm is working with Meridian Energy on developing the largest green hydrogen plant globally and is looking for registrations of interest in the development of the same.

DO READ: Which six blockbuster stock stories are gaining popularity among investors On 3 August, Scales last traded at $4,47, up by 0.45% from its last close.

On 3 August, Contact Energy last traded at $8.41, up by 0.72% from its last close.

Scales Corporation Limited (NZX:SCL)

Scales Corporation, an agri-focused company, paid a final dividend of 9.5cps on 9 July, taking the total dividend paid for FY21 at 19cps.

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It declared in June that it would not be able to participate in the Villa Maria sale process. Therefore, all the costs suffered during the process will be evident in the Group's half-year results to 30 June 2021.

On 3 August, Scales last traded at $4.47, up by 0.45% from its last close.

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

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