- Dividend yields reveal about a company’s performance and are usually paid by well-established companies.
- Investors prefer dividend stocks as they provide stability and regularity of income.
- Spark has the highest dividend yield of 7.1%, followed by Genesis and Trustpower.
Dividend stocks in an investment portfolio give additional income to investors. Incorporating such stocks into a portfolio may provide an investor peace of mind regarding their investment. In light of the current market conditions, investors are constantly looking for dividend stocks as they may help them retain a margin of safety or profit cushion on their investments.
Let’s have a look at these 5 NZX-listed firms with more than 5% dividend yield.
Source: Refinitiv as of 22 July 2021
Spark New Zealand, a telecom giant, announced that Ana Wight’s appointment as a Future Director on its Board had been extended for 5 more months till 31 December 2021.
In April 2021, the telecom company paid a 12.5 cent interim dividend per share for H1FY21. It also raised its dividend forecast for FY21 to the high end of the range, at 25cps.
On 23 July, at the time of writing, SPK was trading flat at $4.77.
Genesis Energy, an NZ-based energy company, announced Thursday that Chief Trading Officer, Shaun Goldsbury, has left the firm. Matthew Boswell will work as the Interim CTO for a contractual position for the next 3 months until a permanent successor is found.
Genesis paid an interim dividend of 8.6cps on 1 April 2021.
On 23 July, at the time of writing, GNE was trading flat at $3.46.
Trustpower Limited (NZX:TPW)
Trustpower, a renewable energy firm, recently revealed that national storage recovered at 85% of average in Q1 2022. Fibre customers reached 82% of broadband connection type while mobile connections also crossed over 9K connections. The quarter also saw over 1.7 million customer contacts, up 23% on pcp.
The firm paid an interim dividend of 17cps and a special dividend of 1.5cps on 18 July, bringing the total dividend for FY21 to be 35.5cps.
On 23 July, at the time of writing, TPW was trading at $7.9, up 0.51%.
Scales Corporation Limited (NZX:SCL)
Scales Corporation, an agri-focussed business, revealed in June that it would no longer take part in the sale process for Villa Maria. All the costs incurred during the process will be evident in the Group’s half-year results to 30 June 2021.
On 9 July, Scales paid a final dividend of 9.5cps, bringing the total dividend paid for the year to 19cps.
On 23 July, at the time of writing, SCL was trading at $4.66, down 0.85%.
ANZ recently announced its desire to buy back nearly $1.5 billion of shares. The shares will be bought on-market as part of its capital management strategy. The Group has the financial capability to support its customers while returning surplus capital to its shareholders.
This buy-back is expected to lower ANZ’s CET1 ratio for March 2021 by about 35bps. ANZ’s reported Level 2 and Level 1 CET1 ratios as at 31 March 2021 were 12.4% and 12.2%, respectively.
On 23 July, at the time of writing, ANZ was trading at $29.69, up 0.34%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)