Which are the top 15 dividend stocks on NZX?

Summary

  • An investor might wish to stack a major chunk of portfolio with dividend-paying stocks.
  • Despite an adverse economic environment, dividend stocks mostly perform well.
  • NZX houses some of the biggest and prominent companies, which pay regular dividends to their investors.

Investors prefer investing in dividend-paying stocks to ensure a uniform and secured flow of income. Even under volatile and unfavourable economic conditions, dividend stocks withstand market downturns and try to deliver consistently.

Can’t Miss Reading: Why does dividend matter to investors? A peek at the related NZX stocks

NZX too boasts some of the top dividend-paying companies with strong fundamentals, which are rewarding their shareholders with regular dividends, even under uncertain times of the ongoing coronavirus pandemic.

Must Read: How NZX dividend stocks are managing healthy payouts amid low-interest rate scenario

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Here’s a compilation of 15 NZX-listed dividend stocks worth looking at.

Spark New Zealand Limited (NZX:SPK)

Being the largest provider of telecommunication services across New Zealand, Spark New Zealand Limited boasts a dividend yield of 7.20% as on 7 July.

Owing to a continuous increase in its mobile service revenue as well as growth in its cloud, security and service management revenue, the Company witnessed a steady performance for H1 FY21 with an EBITDAI of NZ$502 million and had paid an interim dividend of 12.5 cps on 9 April 2021.

Recommended Read: Which are the top four telecom companies in New Zealand?

On 8 July, at the time of writing, Spark New Zealand was trading at NZ$4.915, up by 1.24%.

Genesis Energy Limited (NZX:GNE)

One of NZ's leading electricity generators and retailers, Genesis Energy Limited had a dividend yield of 6.41% as on 7 July.

Bolstered by strong retail margins and lower thermal fuel costs, the Company posted a strong H1 FY21 performance with an EBITDAF of $217 million. On 1 April, GNE paid an interim dividend of 8.60 cps to its shareholders.

On 8 July, at the time of writing, Genesis Energy was trading at NZ$3.530, down by 0.14%.

Interesting Read: Which 6 NZX-listed stocks are trending on Monday?

Trustpower Limited (NZX:TPW)

Incorporated in 1993, another electricity generation company functioning in New Zealand is Trustpower Limited. It had a dividend yield of 5.77% as on 7 July.

TPW delivered a strong performance both in retail and as well as in generation for FY2021 with an EBITDAF of NZ$154.1 million. On 18 June, Trustpower paid 17.0 cps as an interim dividend along with a special dividend of 1.5 cps, thus bringing the overall dividend for the year to 35.5 cps.

On 8 July, at the time of writing, Trustpower was trading at NZ$8.02, up by 0.25%.

Do Read: Why are the 5 NZX stock stories trending today?

Scales Corporation Limited (NZX:SCL)

Supplier of essential services to NZ’s primary sector, Scales Corporation Limited, gave a dividend yield of 5.65% as on 7 July.

Aided by its diversified strategy pertaining to agribusiness, SCL posted a solid performance for 2020, with revenue clocking NZ$470.7 million. The Company will pay a final dividend of 9.50 cps on 9 July, thus bringing the total dividend paid during the year to 19.0 cps.

On 8 July, at the time of writing, Scales Corporation was trading down  by 0.21% at NZ$4.8.

Also Read: Look at these 5 interesting NZX Dividend stocks going Ex in June 2021

Contact Energy Limited (NZX:CEN)

Coming up next is Wellington-based, Contact Energy Limited. On 30 March, the Company had paid an interim dividend of 14.0 cps.

The Company had a dividend yield of 5.64% as on 7 July.  

Moreover, in the past too, CEN had offered good dividends to its shareholders.

On 8 July, at the time of writing, Contact Energy was trading flat at NZ$8.400.

Read: Why are 5 NZX50-listed shares trending during the market session?

Kiwi Property Group Limited (NZX:KPG)

Operating in real-estate space, Kiwi Property Group Limited declared an impressive FY21 with an NPAT of $196.5M, majorly on account of fair value property movement. The Company had distributed a final dividend of 2.95 cps on 24 June.

Kiwi Property Group had a dividend yield of 5.54% as on 7 July.

On 8 July, at the time of writing, Kiwi Property Group was trading down by 0.42% at NZ$1.175.

Also Read: What is the trading volume of 4 NZX stocks amid market session?

Australia and New Zealand Banking Group Limited (NZX:ANZ)

Next on the list is Australia and New Zealand Banking Group Limited, which offers multinational banking and financial services. Known for its regular payment of dividends, the Company had a dividend yield of 5.36%, as on 7 July.

Underpinned by a strong home-lending market, ANZ reported a remarkable NPAT of NZ$ 930 million for the half-year period ended 31 March 2021. On 1 July, the Company had paid an interim dividend of 70.0 cps to its investors.

On 8 July, at the time of writing, Australia and New Zealand Banking Group was trading up by 0.23% at NZ$30.09.

Do Read: Are banking shares a good investment? A look at Kiwibank, BNZ, ANZ, ASB, WBC

Chorus Limited (NZX:CNU)

One of the leading providers of telecommunication services across the country is Chorus Limited. Due to steady growth in its fibre connections, CNU reported a sound NPAT of NZ$24 million. On 13 April, the Company distributed a fully imputed interim dividend of 10.5 cps and had a dividend yield of 5.30% as on 7 July.

On 8 July, at the time of writing, Chorus was down by 0.39% at NZ$6.335.

A Quick Read: Is NZ’s Telecom Sector All Set To Experience Growth? 5 Related Stocks- CNU, SPK, VTL, TLS, VCT

Westpac Banking Corporation (NZX:WBC)

Westpac Banking Corporation is one of the largest banks operating across New Zealand. Backed by improved asset quality and a better economic outlook, WBC reported a statutory net profit of $3,443 million for H1 FY21. On 25 June, it rewarded its shareholders by paying an interim dividend of 58.0 cps, it had a dividend yield of 5.02% as on 7 July.

On 8 July, at the time of writing, Westpac Banking was down by 0.011% at NZ$27.32.

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Z Energy Limited (NZX:ZEL)

Supplier of fuel to retail as well as commercial customers across the country, Z Energy Limited boasts a dividend yield of 5.00%, as on 7 July. Due to a systematic reduction in its structural costs and optimising its core business, the Company posted a historic NPAT of NZ$57 million for FY21. It had paid a 14.0 cps as a dividend on 2 June to its shareholders.

On 8 July, at the time of writing, Z Energy was down by 0.36% at NZ$2.800.

Also Read: Why are 5 NZX stocks under the spotlight on Friday?

Vector Limited (NZX:VCT)

Another electricity and gas distribution company operating in Aotearoa is Vector Limited. Owing to continuous investment in innovative technologies and infrastructure, the Company remained resilient and posted a solid H1 FY21 result with a 26.8% increase in its group NPAT amounting to NZ$102.1 million. VCT paid an interim dividend of 8.25 cps on 8 April and had a dividend yield of 4.55% as on 7 July.

On 8 July, at the time of writing, Vector was down by 0.74% at NZ$4.02.

Should Read: 4 Oil and Gas Stocks Garnering Investors’ Attention- ZEL, NZO, NZR, VCT

Meridian Energy Limited (NZX:MEL)

Coming up next is Meridian Energy Limited. With continued customer growth and delivering excellent services, MEL witnessed an underlying profit of NZ$156 million for the half-year period ended 31 December 2021. On 16 April, the Company paid 5.70 cps as an interim dividend, and had a dividend yield to 4.33%, as on 7 July.

On 8 July, at the time of writing, Meridian Energy was up by 0.29% at NZ$5.225.

Read: What is the trading volume of 4 NZX stocks amid market session?

Heartland Group Holdings Limited (NZX:HGH)

Another financial services group on the list is Heartland Group Holdings Limited. Underpinned by the continued growth of its core lending portfolios like motor and reverse mortgages, the Company reported a 10.6% increase in its NPAT, which amounts to NZ$44.1 million for 1H 2021. It had distributed an interim dividend of 4.0 cps on 16 March and had a dividend yield of 4.32% as on 7 July.

On 8 July, at the time of writing, Heartland Group Holdings was flat at NZ$2.09.

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Investore Property Limited (NZX:IPL)

Investore Property Limited primarily invests in large retail properties spread across urban New Zealand. Aided by net valuation gains across its portfolio, the Company recorded NZ$161.3 million as profit after income tax for FY21. On 2 June, the Company made the payment of dividend amounting to 1.90 cps, with dividend yield at 4.26% as on 7 July.

On 8 July, at the time of writing, Investore Property was flat at NZ$2.02.

Must Read: 5 Hot NZX Dividend Stocks That Deserve Your Attention

NZX Limited (NZX:NZX)

NZX Limited manages NZ’s equity, funds, derivatives as well as energy markets. To aid the growth and development of these markets, the New Zealand’s Exchange also offers a host of other services related to trading, clearing, and settlement, etc.

NZX’s operating earnings clocked NZ$34.4 million for FY2020, up 9.7% on pcp. On 26 March, it paid a final dividend of 3.1 cps, thereby bringing the total dividend for 2020 to 6.1 cps and had a dividend yield of 4.19% as on 7 July.

On 8 July, at the time of writing, NZX was down by 0.50% at NZ$1.99.

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