Which are 5 best NZX dividend stocks under NZ$5?

Highlights

  • Dividend stocks are alluring those who are seeking less volatile and lower-risk investments.
  • Turners Automotive Group to pay an interim dividend this week.
  • The Warehouse Group to pay an impressive dividend of 17.5 cps in the first week of December.

Investing in dividend stocks is always recommended as they provide investors with two probable sources of potential profit. Firstly, the predictable income flow, in the form of dividend payouts, and the second is the capital appreciation of a specific stock over the time.

Hence, investors looking to generate income or to build their wealth by way of investing in stock markets must always set aside a significant proportion of their investment portfolio for dividend-paying stocks.

That said, let us take a look at the top five below-five-dollar NZ dividend stocks worth investing.

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Refinitiv

Image description: NZ dividend stocks- TRA, BIT, SCT, WHS, KMD

Turners Automotive Group Limited (NZX:TRA)

Functioning as an integrated automotive financial service group, Turners Automotive Group Limited, caters to the automotive sector.

On 27 October, at the time of writing, Turners Automotive was trading at NZ$4.390, up by 0.23%.

Interesting Read: Are dividend stocks considered good by investors? Can dividends help one become rich?

It will pay an interim dividend of 5.00 cps to its shareholders on 28 October, steered by a solid Q1 performance by its business operations before the lockdown was imposed in August due to the Delta variant.

The Bankers Investment Trust Plc (NZX:BIT)

At the time of writing, on 27 October, The Bankers Investment Trust Plc, which invests in global equity markets across diversified sectors, was trading down by 0.46% at NZ$2.18.

                   

Which are 5 best NZX dividend stocks under NZ$5?

 

On 30 November, the Company will pay 0.550 cps as its third interim dividend to its shareholders underpinned by improved global market environment and solid performance of its portfolio stocks.

Related Read: 6 NZX Stocks That Flourished And Dwindled Today- BIT, BRM, CGF, BLT, RUA, CDI

Scott Technology Limited (NZX:SCT)

On 27 October, at the time of writing, trading at NZ$3.24, Scott Technology Limited was gaining 2.86%. The Company focuses on smart automation and robotic solutions enabling businesses to become more effective and efficient.

Do Read: Which are five popular capital goods stocks in New Zealand?

SCT will distribute a final dividend of 4.0 cps on 22 November, driven by double-digit growth both in its revenue and margin, which could be achieved by streamlined cost structure and SCT’s expertise.

The Warehouse Group Limited (NZX:WHS)

On 27 October, at the time of writing, trading flat at NZ$4.040 The Warehouse Group Limited is the largest retail chain operating in the country, with over 260-plus stores across NZ.

Can’t Miss Reading: A lens on 5 NZX retailers amid the prevailing lockdown

On 3 December, WHS will pay a handsome final dividend amounting to 17.5 cps to its shareholders, thereby taking the full-year dividend to 35.5 cps.

Underpinned by a strong operational performance, the Group announced an impressive FY21 performance with NPAT for the year reported at NZ$117.7 million.

Kathmandu Holdings Limited (NZX:KMD)

On 27 October, at the time of writing, declining by 0.61% at NZ$1.620, Kathmandu Holdings Limited is known for selling travel apparel and outdoor equipment.

A final dividend of 3.0 cps is payable by KMD on 15 December, thus bringing the total dividend for FY21 to 5.0 cps.

Bolstered by stellar performances by its iconic brands, Rip Curl and Oboz, the Company witnessed a robust FY21 performance with sales amounting to NZ$922.8 million and statutory NPAT clocking NZ$63.4 million.

A Quick Read: Kathmandu (NZX:KMD): Which brands do the Company own?

Bottom Line

Investors are always on the outlook for dividend-paying companies having a firm financial footing backed by strong fundamentals.

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