- Broadly speaking, income stocks offer uninterrupted, steady dividends to their investors over a period.
- With sound interim results, F&C Investment Trust is all set to pay its first interim dividend in the initial week of August 2021.
- Owing to solid growth in its business, Livestock Improvement Corporation declares an impressive 2020-21 dividend, thereby maintaining a strong balance sheet.
Investors are lured towards income stocks as they are consistent in paying dividends even under turbulent market conditions. These stocks indicate the firm financial footing of the company.
Investing in income stocks is always a safer bet for conservative investors who seek regular dividend payouts while keeping a moderate risk appetite. Moreover, these income stocks are considered as a holy grail for a low-risk and balanced retirement portfolio.
Amid the given backdrop, let us now glance through the 5 NZX income stocks worth looking at in August 2021.
Source: Copyright © 2021 Kalkine Media
F&C Investment Trust PLC (NZX:FCT)
First on the list is F&C Investment Trust PLC, which focuses on the long-term growth of capital by investing money in equity stocks located across the globe. It would pay its first interim dividend of 3.0 pence per share on 2 August.
The Company has successfully been battling through the pandemic and expects increased dividend income over the years as the global economic recovery gains momentum.
FCT expects a further rise in its total dividend income for 2021 as well. Also, in its half-year results ended 30 June 2021, the Company posted a sound balance sheet, with gearing and fair value debts adjustments adding to a strong performance by its overall portfolio investment.
On 26 July, at the time of writing, F&C Investment Trust was rising by 1.49% at NZ$17.050.
Henderson Far East Income Limited (NZX:HFL)
Second on the list is Henderson Far East Income Limited, which actively invests in diversified sectors across Australasian, Indian, Japanese, and Pacific markets.
HFL had announced three interim dividends w.r.t. the year ended 31 August 2021. It would pay its third interim dividend of 5.90 pence per share on 27 August to its shareholders, while its first and second interim dividend worth 5.80 pence per share were paid on 26 February and 28 May, respectively.
HFL states that despite poor global growth in 2020 owing to COVID-19, the economic drivers maintain a sound position across Asia, and it would continue to seek maximization of its investors' income through international diversification.
At the time of writing, Henderson Far East Income was dropping by 2.26% at NZ$6.500, on 26 July.
The Bankers Investment Trust PLC (NZX:BIT)
We would now look into The Bankers Investment Trust PLC, which invests in diversified sectors of the world. Aided by the lifting of lockdown in different parts of the world and with the rollout of COVID-19 vaccines, the global markets are optimistic and in recovery mode.
As a result, BIT seeks to improve its future dividend income. The Company would distribute a second interim dividend worth 0.538 pence per share to its shareholders on 31 August. It has already paid its first interim dividend worth 0.538p per share on 28 May.
The shares of The Bankers Investment Trust were climbing by 1.74% at NZ$2.340, at the time of writing, on 26 July.
The City of London Investment Trust Plc (NZX:TCL)
Now comes The City of London Investment Trust Plc, which primarily invests in the UK market.
The Company is regular in paying dividends, with TCL paying a fourth dividend of 4.80 pence per share on 31 August, thereby bringing the total dividend for the year ended 30 June 2021 to 19.10 pence per share, up 0.5% on the preceding year.
The Company states that though the initial contraction in Q1 in 2021, the UK economy is set to sharply recover during the rest of the year, thus marking increased returns for its investors.
On 26 July, The City of London Investment Trust, was gaining by 0.64% at NZ$7.900, at the time of writing.
Livestock Improvement Corporation Limited (NZX:LIC)
Last on the list is Livestock Improvement Corporation Limited, which is an agri-tech company delivering high-quality animal genetics and technology. On 20 August, the Company would distribute a final dividend worth 12.51 cps to its shareholders.
Underpinned by good growth across its core businesses, LIC posted a 31% rise in its NPAT, amounting to NZ$22.9 million in its 2020-21 annual results. Maintaining a solid balance sheet with no debts toward the year-end, the Company’s underlying earnings is likely to be between NZ$19 million to NZ$25 million for 2021-22.
On 26 July, Livestock Improvement Corporation was trading flat at NZ$1.350, at the time of writing.