Which are 5 NZX dividend stocks under NZ$5?

Highlights

• Dividend stocks are usually the favourite of all investors as they assure a steady income stream.
• Kathmandu Holdings will pay a dividend next month, backed by a strong performance by its iconic brands.
• The Warehouse Group declares an impressive 17.5 cps as the dividend.

Investors looking for continued and stable investment growth with low risks must invest in dividend stocks. These dividend-paying companies have a firm financial footing.

With this backdrop, let's quickly cast a glance at the five NZ-listed dividend stocks which cost less than NZ$5.

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Kathmandu Holdings Limited (NZX:KMD)

Kathmandu Holdings Limited specialises in making quality apparel and outdoor sports equipment. On 15 December, KMD will distribute a final dividend worth 3.0 cps among its shareholders.

Related Read: Are the 5 NZX retail stocks benefitting amid the pandemic?

Underpinned by the solid sales performance of its brands, Oboz and Rip Curlz, the Company posted a robust FY21 performance, with its underlying EBITDA and statutory NPAT clocking at NZ$113.3 million and NZ$63.4 million, respectively.

NZX dividend stocks under NZ$5

At the time of writing, Kathmandu Holdings was trading up by 0.64% at NZ$1.570, on 2 November.

The Warehouse Group Limited (NZX:WHS)

One of the leading retailing groups across the Kiwi nation is The Warehouse Group Limited. It will pay a final dividend of 17.5 cps on 3 December.

With a 164.6% increase on pcp, the Group NPAT was recorded at NZ$117.7 million, majorly on account of increased online sales and strong operational performance.

Shares of The Warehouse were down by 0.50% at NZ$3.970, on 2 November, at the time of writing.

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Scott Technology Limited (NZX:SCT)

Functioning as an engineering company, Scott Technology Limited produces automated production and process machinery. A final dividend of 4.0 cps would be payable by the Company on 22 November.

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Owing to the solid performance of its core business operations and streamlined operating cost structure, SCT’s FY21 revenue was recorded at $216.2 million, up 16% on the prior year.

Moreover, the Company aims to focus more on technology, so as to generate stronger growth in the future.

On 2 November, Scott Technology’s share was down by 0.93% at NZ$3.200, at the time of writing.

Spark New Zealand Limited (NZX:SPK)

Spark New Zealand Limited is the country’s leading telecom company, which has declared H2 FY21 dividend of 12.5 cps, thus bringing the full-year dividend to 25.0 cps.

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The Company reported an EBITDAI growth of NZ$1,124 million. It has attributed this feat to its solid performance in its mobile and cloud, security, and service management revenues.

Shares of Spark New Zealand were declining by 0.66% at NZ$4.520, on 2 November, at the time of writing.

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property Group Limited is New Zealand’s prominent real estate company. It had announced the total dividend for FY21 to be at 5.15 cps.

Due to stable economic conditions in the second half of the year, the Company experienced an increase in its property portfolio revaluation and has started FY22 on a good note.

At the time of writing, on 2 November, Kiwi Property was down by 0.43% at NZ$1.155.

Related Read: How are 5 NZX REIT stocks faring amid falling rents?

Bottom Line

Dividend stocks are always a good investment bet for low-risk takers, as they assure their investors of steady income flow.