Look at Top 5 Dividend Stocks On The NZX

 Summary

Top 5 Dividend Stocks are the ones that have a high yield, strong fundamentals and a consistent dividend payment history. Dividends are a steady source of income for the shareholders.

·         Top dividend stocks have good dividend yield

·         Their fundamentals are also strong

·         They have enough cash-reserves to consistently reward their shareholders

Dividend Stock are the ones that have a high yield, strong fundamentals and a consistent dividend payment history. Dividends are a steady source of income for the shareholders.

However, the stocks should be picked very carefully. Dividend yields should not be the only consideration, but one should look at stock performance and company’s financials.

Let’s look at 5 Top Dividend Stocks on the NZX on the basis of their yield, history and stock performance

Australia and New Zealand Banking Group (NZX:ANZ; ASX:ANZ)

It is an Australian bank with operations in New Zealand with a market capitalisation of NZ$82.29 billion. The bank paid a total dividend of 142 cps in FY21 has a dividend yield of 7.4%. on 9 May it declared an interim dividend of 72 cps with 9 cps as imputation credits. The payment date for the dividend is 1 July 2022.  In April, ANZ entered into a joint venture with a leading European payments provider, Worldline.

Warehouse Group Limited: (NZX:WHS)

WHS is a big retailer of NZ which has a market cap of NZ$1.14 billion and the dividend yield works out to be 11.4%. Despite a dip in its profits due to store closures due to lockdowns, it declared an interim dividend of 10 cps with imputed credits of 3.88 cps.  The dividend was paid on 28 April. The Company confirmed that the dividend was in line with its policy to distribute at least 70% of the adjusted net profit after tax.

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

Genesis is an energy company with a market cap of over NZ$2.9 billion. It paid an interim dividend of  8.7 cps on 1 April 2022 and has a yield of  8.1%. The energy company also reported strong growth in its net profits with an increase in the EBIDTAF.   

Heartland Group Holdings Limited 

Heartland Group ‘s market cap is pegged at NZ$1.38 billion. The last dividend declared by the Company was an interim one of 5.5 cps and was paid on 16 March. The Company has been paying dividends every year, and the yield on them works out to be 7.68%. The group has posted strong financial results for 1HFY22 with a 7.8% rise in its profits. It is also planning to takeover StockCo, an Australian livestock finance company.

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

SPK is a large NZ-based telecom provider with a market cap of NZ$8.69 billion. It paid a dividend of 12.5cps in April 2022. SPK has a dividend yield of 7.07%.  SPK has performed well despite COVID-19 disruptions. It delivered a growth of 5.2% in revenue and 7.6% EBIDTA in the half-year.

Bottom Line: An investor should pick and choose his stocks very carefully to get the best results. A good dividend stock has a good high yield, good history and strong financial performance