Which are the 5 dividend-paying penny stocks on NZX?

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Which are the 5 dividend-paying penny stocks on NZX?

Dividend paying penny stocks
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Highlights 

  • Investors are drawn towards dividend-paying stocks for they are a reliable income source.
  • NZ Windfarms paid 0.45 cps as dividend amount on 22 September.
  • Vital announces to reward its shareholders by paying a dividend in mid-October.

Declaration of dividend plays a vital role in the selection of stocks by the investors, as they get indication of receiving a steady flow of income.

Moreover, dividends are a key indicator of the financial sturdiness of a company, thereby attracting potential investors. Hence, businesses declare annual, half-yearly, and even quarterly dividends to their shareholders.

Let’s now have a look at the top dividend paying NZX penny stocks.

NZX dividend paying penny stocks- NWF, NZM, MHJ, MHM, VTL

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

NZ Windfarms Limited (NZX:NWF)

The owner and manager of the specialist wind farm, NZ Windfarms Limited paid a final dividend of 0.45 cps on 22 September, thus taking the total FY21 dividend to 1.0 cps.

Inspite of facing an unseasonably low wind year, the Company remained resilient and witnessed a solid performance for FY21, with NPAT clocking at NZ$0.3 million and EBITDAF at NZ$5.1 million.

NWF is focused on pursuing a repowering strategy to increase its renewable energy supply for the country.

At the closing bell, on 22 September, NZ Windfarms dipped by 2.08% at NZ$0.235.

Related Read: What has been last 6-month returns for 5 NZX penny stocks?

NZME Limited (NZX:NZM)

Based in Auckland, NZME Limited is NZ’s famous digital media business. The Company rewarded its shareholders by paying 3.0 cps as a dividend on 22 September.

By continuously focusing on commercial discipline and prudent cost structure, NZM witnessed impressive half-year financial results for the period ended 30 June 2021. Its operating EBITDA grew by 4%, amounting to NZ$30.1 million and its NPAT was up by 85%, i.e., NZ$5.6 million on pcp.  

On 22 September, NZME fell by 1.04% at NZ$0.950, at the market close.

Must Read: 10 hot NZX penny stocks for September 2021

Michael Hill International Limited (NZX:MHJ)

Launched in 1979, Michael Hill International Limited is known for its appealing jewellery. On 24 September, the Company will pay AU3.0 cps as the final dividend, thereby taking the full-year dividend to AU4.5 cps.

Underpinned by solid strategy execution and resilience, MHJ achieved a robust power-packed FY21 performance, with EBIT clocking at NZ$72.4 million and digital sales soaring by 53.4%.

At the end of the trading session, Michael Hill International gained by 1.15% at NZ$0.880, on 22 September.

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

MHM Automation Limited (NZX:MHM)

Canterbury-based MHM Automation Limited operates in the industrial automation space. On 22 September, the Company paid a special dividend of 1.5 cps.

The said dividend is being paid from the sale proceeds of its New Plymouth-based property.

Moreover, owing to the strong performance of its chilling and freezing business, MHM reported an NPAT of NZ$4.1 million and revenue of NZ$51 million for FY21.

At the closing bell, MHM Automation traded flat at NZ$0.640, on 22 September.

Interesting Read: Which are the five popular NZX-listed material stocks?

Vital Limited (NZX:VTL)

Operating for more than 20 years, Vital Limited provides a critical communication network throughout the Kiwi land. The Company will pay a dividend of 2.0 cps on 15 October to its shareholders.

After the completion of its infrastructure projects, VTL is now benefitting from its nationwide presence and is leveraging od new solutions being offered.

As a result, VTL experienced a growth of 5.6% in its revenue for FY21, amounting to NZ$35.24 million, when compared to the preceding year.

The shares of Vital remained unchanged at NZ$0.700, on 22 September, at the market close.

Don’t Miss Reading: How to diversify portfolio with NZX small-cap stocks?

Bottom Line

Dividend stocks form a key component when creating a robust investment portfolio. Considering one’s risk tolerance, investors can decide upon the investments which are better suited to them.

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