Catch them young adage fits perfectly for scrutinizing Best Dividend Stocks. Investors looking for passive income through dividends are always on the lookout for Dividend Paying Stocks making a turnaround. Such stocks are generally exposed to full potential of the stock. One of such Top Dividend Paying Stocks is:-
Air New Zealand Limited (ASX: AIZ)
Air New Zealand Limited (ASX: AIZ) released an investor update for May 2024 on 27 June 2024.
In May, the group capacity decreased by 2.5%, with May and June typically being the two lowest demand months for the airline, except in FY23 when there was exceptionally high demand during the initial post COVID recovery period. Long-haul international ASKs decreased by 5.0%, short-haul international ASKs increased by 2.1% and domestic ASKs were down slightly by 1.0% compared to last year.
The decline in Group YTD RASK compared to the prior year was due to a significant mix change for the 2024 financial year to date, with long-haul capacity growth and load factors being substantially higher relative to short-haul.
Short-haul YTD RASK, which includes the Domestic, Tasman, and Pacific islands networks, declined by 6.6% compared to last year.. Long-haul YTD RASK declined by 12.8%, driven by both North American and, to a lesser extent, Asian routes.
The company had previously announced the establishment of a new three-year, $250 million, unsecured, syndicated revolving credit facility. This new facility replaces the previous $400 million unsecured committed Crown Standby Facility, which was entered into as part of the airline’s recapitalization package on 30 March 2022. This was later cancelled on 25 March 2024 and was never drawn upon.
After experiencing a significant operational decline during the COVID-19 period, the company has recently achieved a notable financial recovery to its pre-COVID levels. The company generated revenues of NZ$6.3 billion, up from NZ$5.78 billion, and has also recovered from recent losses to profitability. The growth in the company's asset base has also been significant, and there has been a substantial expansion in book value for shareholders.
AIZ, is a High Yield Dividend Stock and has maintained a track record of being a consistent dividend payer since 2009. For the first half of 2024, AIZ reported an unimputed ordinary interim dividend of 2.0 cents per share. This dividend equates to a 41% payout ratio, reflecting the company's policy to distribute ordinary dividends ranging from 40% to 70% of underlying net profit after tax.
Comparatively, on 30 June 2023, AIZ issued a special dividend of 6.0 cents per share,
The dividend forecast indicates a consistent upward trajectory in payments. Beginning at $0.01 per share for both September 2024 and March 2025, dividends are projected to increase to $0.02 per share commencing March 2026. This incremental pattern signaling a steady rise in dividend disbursements provides a positive outlook for shareholders in the near future.
Source: Company’s Report
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