Which are 5 NZX stocks with above-5% dividend yield?

Highlights

  • Investors seek dividend stocks as they can provide them a regular income.
  • Heartland Group released its annual report for FY21.
  • Kiwi Property expects to pay a dividend not lower than 5.3cps.

Dividend yield is a ratio that shows the percentage of a firm’s market price of a share that is provided to investors as dividends. Investors are on the lookout for stocks that offer a high dividend yield as they show the core strength of the company and its sustainability.

Here is a look at 5 NZX stocks that have an above-5% dividend yield.

5 NZX Dividend Stocks, market cap, YTD returns and dividend yield

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

Heartland Group Holdings Limited   (NZX:HGHASX: HGH)

Heartland Group is a financial services company that has a dividend yield of 6.67%.

The Group published its annual report for 2021. The Group reported muted growth in H1 of FY21 but a higher growth in core lending portfolios in H1 of FY21. While NPAT for HGH stood at $87 million (+20% on FY20), gross finance receivables persisted with an 8% growth on pcp to $5 billion.

The Group paid a final dividend of 7cps on 15 September. After combining an interim dividend of 4cps, the total dividend for the year stood at 11cps.

HGH ended the day 1.75% in red to close at $2.25.

Trustpower Limited (NZX:TPW)

Trustpower is an electricity-producing company that has a dividend yield of 6.25%.

The Group released its annual presentation on 22 September.

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COVID-19 effects have been relatively modest on the business in FY21. The firm has been able to maintain operations largely with aggregate electricity demand not affected significantly.

The Group also experienced an improvement in its financial performance, majorly in the retail division.

Trustpower declared a final dividend of 18.5cps, taking the full-year dividend to 35.5cps.

TPW ended the day 1.32% in red to close at $7.45. 

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property is a real estate investment firm, which has a dividend yield of 5.52%.

On 21 September, Kiwi Property gave the nod to a build-to-rent development, which will be NZ’s first and will be located at Sylvia Park in Auckland. The construction of the 295-apartment complex will start in late 2021 with renting to start in early 2024.

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KPG paid a final cash dividend of 2.95cps for the 6 months ended 31 March 2021, taking the total cash dividend to 5.15cps for FY21. The Group expects the dividend payment for FY22 to be not lower than 5.3cps.

KPG ended the day 2.54% in red to close at $1.15.

Chorus Limited (NZX:CNU, ASX:CNU) 

Chorus, an NZ telecom infrastructure provider, has a dividend yield of 5.31%.

Chorus will pay a final dividend of 14.5cps on 12 October, taking total dividends for FY21 to be 25cps. The group has provided an initial dividend guidance of 26cps for FY22.

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The foreign exchange rate used for the company’s final dividend has been set at 0.96782, payable to Australian investors for FY21.

CNU ended the day 0.15% in green to close at $6.55.

Contact Energy Limited (NZX:CENASX:CEN)

Contact Energy is the largest energy firm in NZ and has a dividend yield of 5.31%.

The Group released its operating report for August this month. Contact reported mass market electricity and gas sales of 436 GWh from its customer business in August 2021 compared to 450GWh in the same month last year.

Contact paid a final dividend of 21cps on 15 September.

CEN ended the day 1.57% in green to close at $8.41.

Bottom Line

Most well-established and mature companies tend to pay dividends. However, investors must take note that not all high-dividend yield stocks imply attractive investment prospects.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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