- 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.
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.
Source: Copyright © 2021 Kalkine Media
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.
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%.
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%.
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.
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.
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$1.175.
Australia and New Zealand Banking Group Limited (NZX:ANZ)
Next on the list is Australia and New Zealand Banking Group Limited, which offers multinational banking and financial services. Known for its regular payment of dividends, the Company had a dividend yield of 5.36%, as on 7 July.
Underpinned by a strong home-lending market, ANZ reported a remarkable NPAT of NZ$ 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.
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.
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.
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.
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.
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.
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.
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.
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.