Which 3 NZX dividend stocks to consider in 2022?

Highlights

• Dividend stocks allure investors for they offer returns even during rocky market periods.
• Tower to pay a final dividend of 2.5 cps in the first week of February.
• Seeka announces rewarding its shareholders with 13.0 cps as dividend next month.

Dividend stocks are considered to be reliable sources of income and returns. Hence, investors prefer investing in these stocks as they ensure a regular flow of returns even during economic downturns.

Moreover, the amount received by way of dividends can further be re-invested to enhance one's investment portfolio.

With this overview, let us quickly look at the three NZX-listed dividend stocks worth investing in this year.

Source: © 2022 Kalkine Media® data source- EODHD/Others

Tower Limited (NZX:TWR; ASX:TWR)

First on the list is Tower Limited, which offers general insurance to its customers. The Company has announced paying a final dividend of 2.5 cps to its shareholders on 2 February, thus taking the total FY21 dividend to 5.0 cps.

Related Read: Why to look at 3 prominent NZ insurers?

TWR reported a strong FY21, with a 72% rise in its profit, amounting to NZ$19.3 million.

Further, rewarding customer experiences clubbed with digital and data capability have significantly contributed to the Company’s growth.

The Company continues to focus on prudent cost control and improved efficiencies for the year ahead.

On 28 January, at the end of the trading session, Tower traded flat at NZ$0.675.

Seeka Limited (NZX:SEK)

Next is Seeka Limited, which would reward its customers by paying a full-year dividend of 13.0 cps on 23 February.

Must Read: Which are 4 popular NZX food stocks to consider in 2022?

Owing to strong demand for its services during the first six months of 2021, the Company delivered improved earnings and 77% growth in its NPAT for the period ended 30 June 2021.

SEK is consistently focusing on the successful integration of acquisitions and delivering synergy gains.

On 28 January, at the end of the trading session, Seeka fell by 1.17% at NZ$5.090.

The City of London Investment Trust (NZX:TCL)

Topping off the list is The City of London Investment Trust, which will pay an interim dividend of 4.80 pence per share on 28 February.

It posted a sound recovery for 2021 after a sharp downturn in 2020, i.e., TCL’s portfolio holdings witnessed improved profits and dividends, thus showcasing strength after the initial shock of the pandemic in 2020.

TCL is maintaining a positive outlook for the future and follows a conservative and valuation-based approach in selecting stocks for its portfolio, thereby ensuring a better dividend experience for its investors.

On 28 January, at the end of the trading session, The City of London Investment climbed by 3.24% at NZ$8.280.

Also Read: Half-Year results highlight for 4 NZ stocks - TCL, CNU, HGH, FRE

Bottom Line

Dividend declaration not only improves overall stock prices but also attracts potential investors for putting their money in such dividend-paying stocks.