Would 5 NZX dividend stocks prove resilient during market crash?

Highlights

• Dividend stocks can provide a regular source of income to investors.
• Genesis released its performance report for Q1 FY22.
• Heartland Group achieved earnings of $87 million in 2021.

Dividend stocks are usually in high demand among investors because they provide a steady stream of income. These stocks can be a good go-to option for investors whose incomes had been negatively impacted by the ongoing coronavirus pandemic and record low interest rates.

However, high dividend-paying stocks are not necessarily a wise investment. A stock's dividend yield may be high due to a huge drop in its stock price, signaling financial difficulty that might affect its capacity to pay future dividends.

Let’s have a look at the performance of 5 NZX-listed dividend stocks.

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Spark New Zealand Limited (NZX:SPK; ASX:SPK)

Auckland-based telecommunications company, Spark New Zealand, reported a 1% rise in EBITDA in the second quarter of FY21 due to strong revenue growth and systematic cost cutting.

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Spark declared a 12.5cps dividend for the second half of FY21, taking the total payout to 25cps. The company also announced that its annual general meeting (AGM) would be held on 5 November.

On 29 October, at the time of writing, SPK was trading at $4.555, up 0.11%.

Genesis Energy Limited (NZX:GNE; ASX:GNE)

Genesis Energy, a diversified NZ-based energy company, announced its Q1 FY22 performance report on 20 October.

In the retail segment, total customer demand was down by 6% while net customer churn dropped to 14% in the quarter. In the wholesale segment, average portfolio fuel costs were down by 37% to $64/MWh in the quarter.

RELATED READ: Genesis (NZX:GNE): How did the Company perform in Q1 FY22?

Moreover, the joint venture recently finalised the Kupe inlet compression project, allowing the Kupe production station to return to the full capacity production of 77TJ/day.

On 29 October, at the time of writing, GNE was trading at $3.25, up 1.56%.

Heartland Group Holdings Limited (NZX:HGH; ASX:HGH)

Heartland Group released its FY21 results on 28 October.

Heartland achieved earnings of $87 million in 2021 with the first half affected by successive lockdowns and growth returning in the second half. The Group saw an overall flow of asset growth rate of 8%, reflecting ebbs and flows created by lockdowns and uneven supply logistics.

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The Group remains on track to deliver a result within the guidance range of $93-$96 million.

On 29 October, at the time of writing, HGH was trading flat at $2.35.

Trustpower Limited (NZX:TPW)

Trustpower notified the market that the Group would invite its shareholders to a webinar where the Company’s CEO and CFO will reflect on TPW’s half-year results.

The Group made a payment of final dividend of 18.5cps, taking the total dividend to 35.5cps for the full year. It plans to pay a special dividend of up to 65cps in early FY23.

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On 29 October, at the time of writing, HGH was trading at $7.3, down 1.35%.

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property will announce its interim results for the 6 months ended 30 September 2021 on 22 November.

KPG acquired 385 Mt Wellington Highway for $27.5 million this month. The settlement of its acquisition will happen on 24 June 2022. For the 6 months ending 31 March 2021, KPG paid a final cash dividend of 2.95cps. The Group expects the dividend to be at least 5.3cps next year, depending on COVID-19 lockdowns and the company's performance.

On 29 October, at the time of writing, KPG was trading at $1.14, down 0.87%.

Bottom Line

Dividend-paying firms are constantly in demand by investors because they can provide a steady source of revenue to their shareholders.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)