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Highlights
- Investors are often attracted to dividend stocks as they are known for being reliable investments.
- Tower to pay 2.5 cps as its FY21 dividend in February 2022.
- Turners Automotive Group to reward its shareholders by paying an interim dividend of 5.0 cps next month.
Dividend stocks are often considered as a safe investment bet as they provide their investors with an opportunity to make money even during turbulent economic conditions. Moreover, dividend payments can further be reinvested to appreciate one’s investment portfolio.
With this backdrop, let us walk through the five NZX dividend stocks worth considering for next year.
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Tower Limited (NZX:TWR)
Tower Limited, offering general insurance, has announced to pay a final dividend amounting to 2.5 cps on 2 February 2022.
In its FY21 results, the Company’s underlying NPAT and reported profit clocked NZ$20.8 million and NZ$19.3 million, respectively, underpinned by its rewarding customer experiences, digital and data capability and distribution growth strategies.
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TWR remains focused on delivering sustainable earnings and premium growth to all its stakeholders.
At the time of writing, on 3 December, Tower was trading flat at NZ$0.690.
Turners Automotive Group Limited (NZX:TRA)
Offering automotive financial solutions is Turners Automotive Group Limited. On 27 January, it would distribute a Q2 dividend of 5.0 cps to its investors. Previously, it had declared a Q1 dividend of 5.0 cps, thereby taking the HY22 dividend to 10.0 cps, up 25% on pcp.
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Owing to improved business and enhanced customer demand, TWR’s NPAT grew by 26% to NZ$16.9 million for HY22.
The Group has forecasted a full-year dividend of 22.0 cps and is optimistic about a much stronger performance in FY23 and FY24.
At the time of writing, on 3 December, Turners Automotive Group was up by 1.60% at NZ$4.440.
Templeton Emerging Markets Investment Trust Plc (NZX:TEM)
Functioning as an investment vehicle, Templeton Emerging Markets Investment Trust Plc will pay an interim dividend of 1.0 cps on 10 January 2022.
As the economies worldwide continue to recover from the pandemic, TEM's portfolio holdings emerged stronger, resulting in a 3.3% increase in the Company's net asset value.
TEM remains positive and is focused on delivering attractive returns to its shareholders over time.
At the time of writing, on 3 December, Templeton Emerging Markets Investment Trust rose by 3.82% at NZ$3.530.
JPMorgan Global Growth & Income plc (NZX:JPG)
Another company operating in the financial sector is JPMorgan Global Growth & Income plc. On 7 January 2022, the Company would pay 4.24 pence per share as a second interim dividend.
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It navigated successfully through the unchartered waters of the pandemic with its portfolio companies performing better with the global economic recovery.
JPG continues to evolve itself and give enhanced returns to its stakeholders.
At the time of writing, on 3 December, JPMorgan Global Growth & Income gained 0.23% NZ$8.780.
Mainfreight Limited (NZX:MFT)
Mainfreight Limited, the famous logistics and transport company of New Zealand, will reward its shareholders by paying 55.0 cps as an interim dividend on 17 December.
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Bolstered by effective capital expenditure and strong performance of its business operations, MFT’s net profit and revenue stood at NZ$57.89 million and NZ$2.274 billion, up respectively by 79.4% and 41.4%, for the half-year period ended 30 September 2021.
It maintains a positive outlook and is confident of its increased growth for the remainder of the financial year.
At the time of writing, on 3 December, Mainfreight was up by 0.26% at NZ$89.680.
Bottom Line
Dividend-paying stocks are often considered relatively safe companies to invest in as compared to others, for they mostly provide a regular income stream besides helping in appreciating a stock’s value.