Why these 10 NZX stocks have high dividend yields?

Summary

  • Dividend yield is a financial ratio that computes dividend per share divided by the price per share.
  • It measures cashflow being received by investors for every rupee invested in equity.
  • Here is a list of 10 NZX stocks that have good dividend yields.

Dividend yield indicates how much a firm has paid out in dividends in a given year. The yield is expressed as a percentage rather than a fixed quantity. This makes it simpler to understand how much a shareholder earns in dividends for every dollar invested.

Dividend yields are a good indicator of a company's performance and are usually paid out by old well-established firms.

In this backdrop, let’s glide through these 10 NZX stocks with high dividend yields.

Source: Refinitiv as of 12 July 2021

Spark New Zealand Limited (NZX:SPKASX:SPK)

Spark is an NZ-based telecommunications firm that also has its operations in Australia and the US. The company offers the internet, landline, mobile and web services to consumer and business customers.

GOOD READ: Which are the top four telecom companies in New Zealand?  

The telecom giant paid an interim dividend per share of 12.5 cents for H1FY21 in April 2021. It also modified its dividend guidance to the top end of the range at 25cps for FY21.

Genesis Energy Limited (NZX:GNEASX:GNE)

Genesis Energy is an NZ-based energy firm, which is engaged in the sale of electricity, reticulated natural gas and LPG. It is NZ’s largest energy retailer that generates electricity using a diversified array of thermal and renewable generating assets spread around the country. It also has a 46% stake in the Kupe Joint Venture, which is responsible for the Kupe Oil and Gas Field located off the coast of Taranaki, NZ.

The energy retailer paid an interim dividend of 8.6 cps on 1 April 2021.

ALSO READ: What are dividends? How do dividends work in New Zealand?

Trustpower Limited (NZX:TPW)

Trustpower is a renewable energy firm that generates power through hydro power stations and windfarms. As part of its multi-product retail operations, the Company provides gas and telecommunications services to its New Zealand clients.

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The firm's generation activities are carried out in both New Zealand and Australia while its retail operations are undertaken in New Zealand. On 18 July, TPW will pay an intermediate dividend of 17 cps and a special dividend of 1.5 cps, totalling 35.5 cps in 2021.

 

Kiwi Property Group Limited (NZX:KPG

Kiwi Property Group is a NZ-based REIT that handles a varied portfolio of real estate throughout NZ.

KPG released its annual meeting presentation for 2021 on Monday. COVID-19 had a substantial impact on the group but the group finished the year strongly and has begun FY22 with positive momentum.

ALSO READ: Which are seven NZX-listed companies paying the best dividends?

For the six months ending March 31, 2021, the Group paid a final cash dividend of 2.95 cps. Its total cash dividend for FY21 was 5.15 cents per share, and the dividend for FY22 is projected to be no less than 5.3 cents per share.

 

Scales Corporation Limited (NZX:SCL)

Scales Corporation has focus on agribusiness. Its main activities include providing logistical services, growing apples, exporting goods, providing insurance services to its subsidiaries, and operating storage and processing facilities.

ALSO READ: Which are the top 15 dividend stocks on NZX?

Scales paid a final dividend of 9.5cps on 9 July, taking total dividend paid during the year to 19cps.

Contact Energy Limited (NZX:CENASX:CEN)

Contact Energy is a sustainable energy firm, which engages in producing electricity with more than 80% of the generation coming from renewable sources. It is strongly placed in wholesale gas supply, gas retailing, and electricity retailing.

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The firm paid an interim dividend of 14 cps in March 2021.

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

ANZ is the third largest banking and financial services group in Australia that offers a wide range of services like mortgages, personal banking, wealth management services to customers.

On 1 July, the Company had paid an interim dividend of 70 cps to its investors.

 

Chorus Limited (NZX:CNU)

Chorus is a telecom infrastructure provider in NZ. The Group released its connections and network usage figures for Q4 FY21.

DO READ: Are dividend stocks considered good by investors? Can dividends help one become rich?

The group’s fibre broadband connections increased by 29,000 during the last quarter while total broadband connections dropped by 1K to 1180K. Chorus’ connection speed witnessed a rise with average connection speed at 202Mbps in June end.

On 13 April, the Company delivered a fully imputed interim dividend of 10.5 cps.

Westpac Banking Corporation Limited (NZX:WBCASX:WBC

Westpac is one of the largest banks in NZ and is the first bank of Australia. It provides a range of financial packages, including consumer, business, institutional banking and wealth management services.

ALSO READ: Why are 10 NZX dividend stocks popular among investors?

On 25 June, Westpac gratified its shareholders by paying an interim dividend of 58 cps.

Z Energy Limited (NZX:ZEL)

Z Energy is a NZ-based firm involved in providing fuel to retail and commercial customers. It is one of the largest NZ fuel companies that provides around 33% of the total fuel needs of the country.

The Group paid 14cps as dividend on 2 June to its shareholders.

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