- Dividends are favoured by investors looking for a consistent source of income
- Corporate NZ is still announcing its ex-dividend dates
- There are some companies that have their record dates in June
There are some investors who prefer dividend-paying companies over others. These are generally risk-averse investors who like a consistent source of income. Dividends have some big advantages. They not only provide a margin of safety but also capital appreciation on the stock.
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Let’s have a look at 2 NZX-listed companies that have their ex-dividend dates in the last week of April.
Argosy Property Limited (NZX:ARG)
ARG is a leading property investment vehicle of New Zealand. It declared an interim dividend of 1.63 cps with the ex-dividend date of 7 June 2022. Imputation credits attached are 0.12 cps and the payment date for the dividend is 22 June 2022.
The yield on the dividend works out to be 5.5% and the Company has been rewarding its shareholders with consistent dividends.
On 18 May, the Company declared its FY22 results with an NPAT of NZ$236.2 million; NZ $163.7 million annual revaluation gain and an increase of 8% on book value. It also reported an NTA increase of 13% per share.
The Company has strong leasing and rent review outcomes, including a 3% annualised rental growth. The FY23 dividend guidance is 6.65 cps, which shows a 1.5% increase over previous year.
On 19 May, the stock was trading up 0.40% at NZ$1.245, at the time of writing.
Vital Healthcare Property Trust (NZX:VHP)
VHP is a property Investment trust, which declared an interim dividend of 2.43 cps with the ex-dividend date of 8 June. Imputation credits attached to the dividend are 0.312 cps and the dividend will be paid on 23 June.
Recently, VHP opened a retail entitlement offer. Under the terms, eligible retail unitholders will be able to subscribe to 1 new unit for every 8.5 existing units.
On 19 May, the stock was trading down 0.34% to NZ$2.95, at the time of writing.
Bottom Line: Many companies have their ex-dividend dates in June. Of these, VHP and ARG are REIT stocks that have their ex-dividend dates in early June.