- Top dividend stocks have a high dividend yield.
- They are also consistent in their dividend payments.
- The best dividend stocks are reliable, and investors can depend on them as a sustainable source of income.
Best dividend stocks belong to those cash-rich companies that have a consistent dividend-paying history and good dividend yields. When invested with these companies, dividends can become a sustainable source of income. Investors must select their stocks very carefully. The top stocks give good dividend yields and have a good dividend-paying history.
Let’s look at the top dividend stocks listed on the NZX to explore in 2022
Westpac Banking Corporation (NZX:WBC ASX:WBC)
WBC is one of the biggest banks operating across New Zealand and Australia. It has been rewarding its shareholders with good dividend payouts. The gross dividend yield works out to be 6.04% and the company paid the final dividend of 60 cps in December 2021. It has a consistent dividend history and paid 58 cps as an interim dividend in June 2021. Historically, it has been paying good dividends to its shareholders.
Also Read: How have 5 NZX financial stocks performed in 2021?
On 7 January, the stock was trading up by 1.44% at NZ$23.30, at the time of writing.
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Australia and New Zealand Banking Group Limited (NZX:ANZ)
ANZ is one of the biggest banks with global operations. The Bank has a strong home loan market, reflected in its strong performance year on year. It rewards its shareholders with good dividend payouts. The gross dividend yield works out to be 5.62% and the company paid a final dividend of 72 cps in December 2021. An interim dividend of 70cps was paid to its shareholders on 1 July 2021. In addition, it has already announced a dividend of 53 cps to be paid on 21 March 2022.
Also Read: Which are top 3 NZ banks to explore in 2022?
On 7 January, the stock was trading up by 2% at NZ$30, at the time of writing.
Warehouse Group (NZX:WHS)
WHS is a leading retail group with a strong market capitalisation. It owns six major brands. The gross dividend yield works out to be 12.11% and it has declared a final dividend of 17.5 cps to be paid on 14 January 2022. It has a consistent dividend-paying history. It paid its previous interim dividend of 13cps on 22 April 2021. WHS had also rewarded its shareholders with a special dividend of 5 cps before that.
Also Read: The Warehouse Group (NZX:WHS) provides sales update for Q1 FY22
On 7 January 2022, the stock was trading flat at NZ$4, at the time of writing.
SPK is a telecom giant that gives good dividend payouts to its shareholders. It paid its final dividend of 12.5 cps in September 2021. The interim dividend of 12.500 was paid in April 2021. It has a consistent dividend-paying history, and the gross dividend yield works out to be 7% due to strong performance despite disruptions caused by COVID-19. Recently, the Group announced that it was on a growth path as it signed a conditional pact to buy back 50% shares of Connect 8 from Electra Group.
This move will support SPK in the rollout of its 5G network and give a boost to its IoT connections.
Also Read: How are these 3 NZX communication stocks gearing up for 2022?
On 7 January, the stock was trading at NZ$4.49 up by 0.33%, at the time of writing.
GNE is one of the biggest utilities companies. It is a cash-rich company with a market capitalisation of NZ$3.4 billion, and revenue for FY21 was NZ$3.2 billion. The EBITDAF for the same period was NZ$358 million. It has a good, and consistent dividend-paying history with a gross dividend yield of 7.1%. According to an investor update, the Company intends to reward shareholders with a consistent, reliable, and attractive dividend. It said that it aimed to pay about 70% of its free cash flow as dividends.
GNE paid its last dividend of 8.8 cps in October 2021. Before that, it had paid an interim dividend of 8.6 cps in April 2021.
On 7 January 2022, the stock was trading down by 0.32% at NZ$2.88, at the time of writing.
Bottom line: New Zealand has some star dividend-paying companies that have a policy of rewarding its shareholders with attractive, consistent and reliable dividends.