WBC, FPH, MEL: 3 blue-chip stocks with dividends creating buzz in 2022

 3 blue-chip stocks with dividends creating buzz in 2022

Highlights:

  • ·         Blue-chip stocks are huge companies with a firm financial footing
  • ·         Westpac Banking to pay 61.0 cps as dividend in June
  • ·         Fisher & Paykel Healthcare Corporation to distribute dividend next month

Blue-chip stocks are those large and well-established companies that are known for their sound financial performance. They boast of having consistent earnings and are leaders in their respective sectors.

Moreover, these companies are better prepared to pull through rocky market conditions owing to their reliable earnings and stable growth over time.

Hence, in this context, let us look at the three NZX-listed blue-chip stocks- Westpac Banking Corporation (NZX:WBC), Meridian Energy Limited (NZX:MEL) and Fisher & Paykel Healthcare Corporation (NZX:FPH).

Westpac Banking Corporation (NZX:WBC; ASX:WBC)

One of the largest providers of banking and financial solutions across NZ is Westpac Banking Corporation, boasting a market cap of about NZ$86 billion.

The bank has entered into a deal with Mercer to integrate BT’s superannuation funds and has agreed to let Mercer Australia take over its Advance Asset Management business. Both of these are likely to be completed by mid-2023.

Last month, WBC revealed its 1H22 results, wherein its cash earnings climbed 71%, and statutory net profit clocked NZ$3,280 million, up 63% on 2H21, majorly attributed to an improvement in efficiency and a significant reduction in costs. It will pay 61.0 cps as an interim dividend on 24 June.

Despite inflationary conditions and rising interest rates, Westpac looks positive for the year ahead and aims to further refine its operating model so as to enhance accountability towards its customers and deliver better returns for its investors.

At the closing bell on 9 June, WBC was down 4.11% at NZ$23.550.

Meridian Energy Limited (NZX:MEL; ASX:MEZ)

One of the country’s largest electricity generators is Meridian Energy Limited, having a market cap of over NZ$12 billion.

A few days back, the Company revealed that the Potline 4 contract, which was suspended, has now been extended till September-end 2022.

In its 1H22 results, the energy giant reported an NPAT and EBITDAF of NZ$145 million and NZ$394 million, respectively, on account of continued growth in retail sales. Also, it paid an interim dividend of 5.85 cps in April 2022. Median Energy is focused on delivering excellent customer services as well as enhanced returns both to its shareholders and other stakeholders.

At the closing bell on 9 June, MEL dipped 1.88% at NZ$4.710.

Fisher & Paykel Healthcare Corporation Limited (NZX:FPH; ASX:FPH)

Fisher & Paykel Healthcare Corporation Limited is a famous manufacturer of medical products and systems, which are sold in nearly 120 countries across the globe and has a market cap of about NZ$12 billion.

The Company has appointed Tracey Barron as its Future Director. Also, despite facing elevated freight rates, FPH recorded operating revenue of NZ$1.68 billion, and its NPAT stood at NZ$376.9 million in FY22 results. It will pay a final dividend of 22.5 cps on 6 July, thus bringing the full-year dividend to 39.5 cps.

FPH continues to advance its manufacturing capacity and expects to grow its investment in R&D so as to create the best possible outcomes for patients.

At the closing bell on 9 June, FPH declined 1.51% at NZ$20.260.

Bottom Line

Over the years, blue-chip stocks have emerged as a preferred investment option due to their strong fundamentals and their ability to pay dividends even during market downturns.

 

 

 

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