How to Get Most from Dividend Paying NZX Stocks in New Zealand
Every investor wants to earn profit over his investment in stock market while investors who are getting profit already always looks to get maximize their profit by their stock selection methods and approaches regarding high dividend paying stocks in New Zealand. If you are an investor in new Zealand and trying to get some stocks that can provide you good growth while giving some cash flow and can build an strong presence for your stock portfolio, I would suggest you to identify some of the high Yield dividend stocks in New Zealand that are relatively underpriced. If you are a newbie I would like to let you know a strong portfolio is one that consists a pool of stocks that can provide your income and growth together. Sometimes people do not use the historical data for stocks not that much efficiently.
If you are able to a stock on its historical data, you cannot have loss that's my personal opinion. Once you understand the market and able to develop a self-investment strategy customized according to your needs you should start investing directly in best dividend paying stocks in New Zealand. There are numerous factors that one can consider even you if you understand what these figures states. To a Newbie willing to invest in New Zealand stock market, I will advise to understand first the basic things about stocks and dividends as much as possible. You can know more about dividend payout ratio, dividend per share, Price to Earnings Growth Ratio, Earning per Share, Dividend Yield, and Price to Earnings Ratio.
Now, I will let you know how I decide which stock is giving high dividend at a good price and which is not. Letâ€™s take an example of Chorus which is a wholesale and retail telecommunication company. Right now stock of this company is being traded on 1.56 having P/E of 3.7, EPS as 0.4 and Dividend per Share as 0.26, DPR as 61 and dividend Yield as 16.35%. Now By these I should clearly get that if I will buy a stock of CHORUS, I will be getting 0.26 back into my account as dividend paid by company if company will make profit which is so obvious because company is making 0.4 from each stock priced at 1.56. I usually select stocks which are priced around mid of 52 week Hi/Low range and which have dividend per share (DPS) more than half of its total EPS, which have high Dividend Payout Ratio typically between 75 to 90 percent with long history of paying dividends off course. This strategy so far has given me some stocks which are lowly priced in New Zealand's stock market i.e. NZX. Here I am giving short reference of some of the Best dividend paying stocks in New Zealand.
For a Great Selection P/E ratio should be always as low as Possible as a low P/E ratio means high earnings and high earnings means possibility of getting high dividend by the organization. If you want to secure your investment, then always go with trustable stock news partner. Nz.dividendinvestor.com is an online web portal where you can get information about New Zealand stocks high dividendand Best dividend paying stock in New Zealand.
Published on Mar 10, 2014
Once you understand the market and able to develop a self-investment strategy customized according to your needs you should start investing...