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Growth stocks are stocks that are expected to grow and generate revenue at a rate higher than the industrial average. However, it is not necessary for these companies to pay dividend necessarily, but it can be a possibility in the future as the company grows.
Investing in growth stocks can be a good long-term investment. High profit margins, a high dividend rate, and a rise in sales are all positive signs of a company's growth prospects.
Let’s have a look at the performance of 5 NZX-listed growth stocks for this year.
Michael Hill performed strongly in Q3 of FY21. In H1 FY21, the Group's regulatory NPAT increased by 82.1% to $39 million, with a 70% growth in EBIT.
At the end of the half year, MHJ's same-store revenues were up 6.3%, digital penetration was over 100%, revenue earnings were up 200 basis points, profits were down, and the company had a strong cash position.
In March, MHJ declared an interim dividend of AU 1.5cps.
Over the past 12 months, the stock price of MHJ has seen a rise of 141.04%. On 20 April, at the time of writing, MHJ was trading at $0.86, down 2.27%.
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ANZ performed admirably in Q1 ended 31 December 2020, despite the volatile market climate. This demonstrated the benefits of a well-structured strategy execution as well as a simple and well-balanced company portfolio.
Due to a greater asset and liabilities ratio, lower loan costs, and higher retail asset margins, ANZ's net interest margin rose 5 basis points to 1.62% over that period. The Group also declared a dividend of A$1.2228 cps, to be paid on 1 September 2021.
Over the past 12-month period, the stock price of ANZ has seen a rise of 83.24%. On 20 April, at the time of writing, ANZ was trading at $31.19, down 0.8%.
Telstra Corporation Limited (NZX:TLS)
Telstra reported EBITDA of $4.1 billion and NPAT of $1.1 billion for 1H21.
The Group recently announced plans to form a new holding company for TLS, build independent subsidiaries, launch a new holding company, and move necessary assets to ServeCo.
The Company anticipates that the current legal system would be strategically important and a key turning point in the T22 plan. Telstra paid an interim dividend of 8cps on 26 March and anticipates revenue to be between $6.6 billion-$6.9 billion for FY21.
Over the past 12-month period, the stock price of TLS has seen a rise of 10.55%. On 20 April, at the time of writing, TLS was trading at $3.67, up 0.27%.
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Westpac reported a statutory net profit of $1.7 billion in Q1 of FY21, up from $550 million quarterly average for H2 of 2020. The Group witnessed higher cash earnings due to higher margins, lower expenses from the phasing of investment spend and an impairment benefit.
Recently, the bank has decided to combine the leadership of its Consumer and Business divisions into a new Consumer & Business Banking division. The new division will be headed by Chris de Bruin, who is Chief Executive of Consumer at present.
Over the past 12-month period, the stock price of WBC has seen a rise of 65.87%. On 20 April, at the time of writing, WBC was trading at $27.39, down 0.69%.
Bankers Investment Trust PLC (NZX:BIT)
Bankers Investment Trust is an investment firm, which provides positive returns to its owners by increasing their dividends. The net asset value per share after AIC formula was 114.9p on 16 April 2021.
On 19 April, BIT issued 1 million new ordinary shares of 2.5p each at a price of 115.1p per share.
Over the past 12-month period, the stock price of BIT has seen a rise of 26.5%. On 20 April, at the time of writing, BIT was trading at $2.35, up 2.17%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)