What is the purpose of dividends? Are they a good sign? A glance at 10 such NZX stocks

Summary

  • Offering regular interim and final dividends despite COVID-19 losses, Westpac Banking Corporation.
  • Australia Foundation Investment Company a stable dividend dispenser for the shareholders.
  • With a good Gross Dividend-Yield Spark, New Zealand is a top contender.

Dividends are those payouts that a company makes to the shareholders when it has earned profits. Without a doubt , dividends are a way of rewarding the shareholders. It is a good sign if a Company is able to pay periodic dividends, it’s a way of sharing the profits earned with them. Dividends are good for investors looking for a sustainable stream of income, but for those looking for growth, dividend-paying companies may not be the best option.

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Let’s have a look at a few such Companies that are considered good dividend stock options

Westpac Banking Corporation (NZX: WBC) (ASX:WBC)

With a market cap of NZ$102,720,570,624, Westpac Banking Corporation is one of the major Companies in the nation. It has offered consistent dividends to its shareholders over the years, encouraging them to keep investing. The Company offers a gross dividend yield of 3.680%. The last dividend it gave out was interim, for amount 58.000c per share with an imputation value of 7.000c, which was paid on 25 June 2021.

On 30 June 2021, Westpac Banking Corporation traded at NZ$27.800, up by 0.14%, when this article was written.

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

Another banking giant that operates in Australia and New Zealand, ANZ also offers regular dividends to its investors. The latest interim dividend announced by it is for 70.000c at 8.000c imputation to be paid on 1 July 2021. The Company has uniformly offered interim and final dividends in the past. With its market cap standing at NZ$86,988,212,826, it offers a gross dividend yield of 5.127%.

On 30 June 2021, Australia and New Zealand banking Group traded at NZ$30.420, up by 0.46%, at the time of writing.

Also read: 5 Interesting NZX Stocks To Watch Today- CBD, MEL, FCT, PEB, ARB

Fisher and Paykel Healthcare Corporation Limited (NZX:FPH) (ASX:FPH)

This Company offers medical equipment such as respiratory and ventilation set ups for domestic and commercial use. It offers timely dividends with its shareholders and operates at a Gross dividend yield of 1.662%, while its market cap stands at NZ$18,160,768,302. It is all set to pay an interim dividend of 22.000c at an imputation value of 8.556c on 7 July 2021. Previously too, there have been at least 2 dividend payments each year.

On 30 June 2021, Fisher and Paykel Healthcare Corporation Limited traded at NZ$31.370, down by 1.20%, at the time of writing.

Read now: Which are the best 10 dividend-paying NZX stocks?

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Meridian Energy Limited  (NZX:MEL) (ASX:MEZ)

This famous energy-based stock offers about 2 interim and 1 final dividends each year. It is another dual-listed name on the list. The last one for 5.700c was paid on 16 April 2021. With a Gross dividend yield of 4.271% and a market cap of NZ$13,540,773,325, the Company is comfortably placed to give out dividends to its shareholders.

On 30 June 2021, Meridian Energy Limited traded at NZ$5.320, up by 0.76%, when this article was written.

Australia Foundation Investment Company (NZX:AFI) (ASX:AFI)

This is an LIC-based investment Organisation with dual listing in Australia and New Zealand. The Company with a market cap of NZ$10,193,987,171 and Gross Dividend yield of 3.099% is known for regular dividends to its investors. The last one it offered was 10.000c paid on 23 Feb 2021.

On 30 June 2021, Australia Foundation Investment Company traded at NZ$8.450, up by 1.20% at the time of writing.

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Spark New Zealand (NZX:SPK)

This company offers digital and telecom services in the country. They have a good track record for dividends and have last offered 12.500c at imputation 4.861c to its shareholders. The Company offers a competitive Gross dividend yield at 7.211%, and NZ$9,018,214,199 in terms of market cap. It has been known to deliver special dividends besides the interim and final ones per year.

On 30 June 2021, Spark New Zealand traded at NZ$4.820, up by 0.10%, at the time of writing.

Contact Energy Limited (NZX:CEN)

This Company aims at developing services powered by renewable energy alternatives. It has a good dividend potential, the last it paid was for 14.000c, with imputation 3.500c, which was paid on 30 March 2021. In previous years too, the organisation has offered substantial dividends. The company’s Gross Dividend yield was 5.556% and NZ$6,395,245,857 in market cap.

On 30 June 2021, Contact Energy Limited traded at NZ$8.140, 2.40% up at the time of writing.

Mainfreight Limited (NZX:MFT)

This globally functioning freight Company is responsible for moving huge consignments overseas. With a Gross dividend yield of 1.154% and a market cap of $7,759,830,109, this Company has been offering good dividends to its investors over the years. Its upcoming dividend to be paid on 16 July 2021 is of value 45.000c with an imputation of 17.500c. Serving an average of 2 dividends each year, the Company has been a feasible bet to its investors.

On 30 June 2021, Mainfreight Limited traded at NZ$76.880, down by 0.17%, at the time of writing.

Ryman Healthcare Limited  (NZX:RYM)

Offering retirement villages besides other services, the last dividend this Company gave out was 13.600c, paid on 18 June 2021. Previously, it has been successful in delivery good and regular dividends to the shareholders. Exhibiting a Gross Dividend Yield of 1.747% and a market cap of $6,495,000,000, it could be considered a stable dividend stock.

On 30 June 2021, Ryman Healthcare Limited traded at NZ$13.170, up by 2.73%, at the time of writing.

Also read : Look at these 5 most traded stocks on the NZX

F&C Investment Trust Plc (NZX:FCT)

This is known as the world’s first investment scheme and has grown to become a huge investment dominion. Its last dividend was valued at 3.000c, which is to be paid on 2 August 2021. Apart from this, shareholders have received at least two dividends from the Organisation each year. Offering a Gross Dividend yield of 1.388%, with a market cap of $8,912,543,639, the Company could be a trustworthy dividend dispensing option.

On 30 June 2021, F&C Investment Trust Plc traded at NZ$16.710, down by 0.12%, at the time of writing.

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