Which are 3 NZX dividend stocks to be considered for 2022?

Highlights

• Dividend stocks can thrive over the years and might provide a steady income. 
• Livestock’s divestment of the automation business boosted its capacity to pay a dividend to the stakeholders.
• Turners Automotive has a dividend payout policy of 60%-70% of NPAT.

Stocks with consistent payouts can flourish across a period of time and might hold the potential to prove beneficial. The dividend health of NZX stocks has enhanced a great deal in 2021 and is further set to shine in upcoming year.

On the given background, let’s go through the latest updates on the 3 NZX stocks paying a dividend in January 2022.

Source: © 2021 Kalkine Media® data source- EODHD/Others

Livestock Improvement Corporation Limited (NZX:LIC)

Agri-tech co-operative Livestock Improvement Corporation Limited last week conveyed to the stakeholders about paying a special dividend amount of 10 cps.

The 100%-imputed dividend amount would be paid by 21 January.

The selling off of the automation business enabled Livestock Improvement to improve its focus on supplying more value on-farm. The Board decided to utilise the proceeds from the sale as a special dividend to the farmers.

On 15 December, at the time of writing, Livestock Improvement was trading flat at NZ$1.4.

Related article; Livestock Improvement (NZX:LIC) gets more livelier with strong 1H21 results

Turners Automotive Group Limited (NZX:TRA)

NZ’s biggest automobile and machinery retailer, Turners Automotive Group Limited, declared the 6-month results closed September 2021 last month.

On the financial front, during the reported period, EPS rose by 25% on pcp to 19.6 cents per share. A dividend amount of 5 cps has been announced for both the first and second quarters, which takes a total 1H22 dividend to 10 cps.

The second quarter’s dividend is payable by 27 January 2022, with a record date of 18 January and an ex-date of 17 January 2022.

The Company anticipates FY22 NPBT to fall amid NZ$40 million-NZ$42 million subject to relaxation of L3/L2 restrictions across upcoming period. 

Also, the Company has a dividend distribution policy of 60-70% of NPAT. Based on which, it is anticipating paying 22 cps during its annual results.

On 15 December, at the time of writing, Livestock Improvement was trading down by 1.13% at NZ$4.36.

Also read; Turners Automotive (NZX:TRA) clocks profit in FY21, aims to meet FY22, FY24 targets

Scales Corporation Limited (NZX:SCL)

Essential services provider to NZ’s primary sector, Scales Corporation Limited has been functional for over 120 years. 

Last week, the Company conveyed to the market about the dividend/distribution declaration of 9.5 cps for the six-month period, payable by 14 January next year. 

On the earnings guidance front, for the year ending December this year, the Underlying net profit is likely to lie between NZ$32 million-NZ$37 million. 

Lately, the Company has conveyed to the market about the resignation of one of its directors Sun Qiang. Further, it was updated that Qi Xin has joined the organisation as a non-executive director of Scales Corporation.

On 15 December, at the time of writing, Scales Corporation was trading down by 0.17% at NZ$5.8.

Do read; Scales Corporation (NZX:SCL):Why did it update its 2021 earnings guidance?

Bottom Line

Dividend stocks are usually well-established organisations with extensive operational years and have been working towards increasing their respective dividend/ distribution.

These entities have a strong balance sheet, lay emphasis on consistent earnings, and make efforts to grow them over the time.