- Dividend-generating companies have an edge over others.
- Offering significant dividends. these Companies have delivered stability to the shareholders.
- The below-listed Companies have displayed consistency in dividend generation in recent years.
What is the purpose of dividends, have you ever wondered? Dividends are a quick notice that the ball is rolling in the right direction for a Company. It reduces risk and volatility of a given stock. Increasing trust in shareholders, dividends are a great way of garnering faith in the business, ensuring people believe in the stable income source, which encourages people to invest/keep invested in the organisation. Dividend stocks perform better than non-dividend ones because investors are looking for at least one stable form of return.
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When selecting a dividend stock to invest in, the rule of thumb is to look at a few factors such as the market cap of the organisation as well as the gross dividend yield. Checking how the organisation has previously fared in terms of dividend distribution is essential too, because it shows one the general trend of how things are done in an organisation. Research enables one to pick the most favourable stock in terms of stable dividend returns, ensuring at least one form of fixed income through investment.
Let’s get ourselves acquainted with 7 of the top dividend-paying organisations on the NZX right now:
Westpac Banking Corporation (NZX:WBC)
This is known to be one of the largest New Zealand banks. Offering a market cap of $100,996,332,474, and gross dividend yield of 3.738%, it is known to pay some of the best-known dividends. Most recently, the interim dividend it paid on 25 June 2021 was for an amount of 58.000c per share, with imputation of 7.000c on it. Each year, the Company shells out at least two dividends for its shareholders.
Australia and New Zealand Banking Group Limited (NZX:ANZ)
Another big name in the banking business, this Company is famous for its generous dividends too. The last dividend it paid on 1 July 2021 was valued at 70.000 c per share, with an 8.000c imputation. Previously, the Company has paid out huge dividends on a regular basis as well. With a market cap of $86,060,943,583, besides a gross dividend yield of 5.158%, it’s one of the leading dividend payers.
Fisher and Paykel Healthcare Corporation Limited (NZX: FPH)
The manufacturers for medical equipment, this Company ranks high on the dividend payer list as well. Boasting a market cap of $17,313,534,744 and a gross dividend yield of 1.721%, the next dividend is to be paid on 7 July 2021, for 22.000c per share, with an imputation of 8.556c. Every year, the Company has stayed consistent with its dividends.
Meridian Energy Limited (NZX:MEL)
This dual-listed Energy stock in Australia and New Zealand is known for quality dividends. The last dividend was paid for 5.700c per share imputed at 1.906c on 16 April 2021. The Company’s market cap is valued at $13,297,372,480 and the gross dividend yield is 4.320%. In the past too, there have been regular dividends paid by the Company, making it a reliable option.
Australian Foundation Investment Company Limited (NZX: AFI)
The dual-listed LIC company has a record of paying sumptuous regular dividends. The last dividend paid by it was on 23 Feb 2021, was valued at 10.000c per share. Before this, the Company has been consistent in dividend distribution, giving out at least two per year, interim and final. The Company offers a market cap of $10,255,029,011 and holds a gross dividend yield of 3.099%.
Mercury NZ Limited (NZX:MCY)
This Company concentrates on making and selling electricity. It has offered the last dividend of 6.800c per share, imputed at 2.644c per share. Prior to this too, there have been substantial dividends distributed to the shareholders. The Company stands at a market cap of $9,263,646,344 and the gross dividend yield is 3.353%.
F&C Investment Trust Plc (NZX:FCT)
Established in 1868, this is one of the oldest investment schemes. In terms of upcoming dividends, the Company is offering 3.000c per share, which has to be paid on 2 August 2021. The Company has been regular in offering good number of consistent dividends in previous years. Statistically, the market cap for the organisation is $9,050,881,413 and the gross dividend yield is 1.379% at the time of writing.