Entering text into the input field will update the search result below

New Zealand Stock For Making Good Profit

Jul. 17, 2013 1:00 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

New Zealand country is a good place for doing business. The country provides safety, stability, ingenuity and proximity to Asia's booming economies. It has a wide range of free trade agreements, pro-competitive regulation, an efficient tax-code, an open political system which make the country an attractive place for investment. The country also gives benefits in the retail sector investment. The Warehouse Group Limited is one of the top Best high yield dividend New Zealand from retail sector. Let's read more about the company.

The Warehouse Group Limited


The Warehouse Group Limited is a New Zealand-based company. It provides a range of products from clothing, entertainment, technology and music to sporting, gardening and grocery. It is largely a discount store similar to Wal-Mart in the United States. It also had operations in Australia, which were sold to Australian Discount Retail.

The company has two operating segments in the New Zealand retail sectors. Its business segments include: The Warehouse segment which was a general merchandise and apparel retailer on July 31, 2012 with 89 stores. The Warehouse Stationary segment which was a stationery retailer with 56 stores and Other Group operations which include the Company's property operations, that owns a number of stores and distribution centers occupied by the other business. During the fiscal year ended July 29, 2012, the company sold a distribution center Puhinui Road, Auckland and a warehouse store located in Invercargill.

Company's announcements

On March 8, 2013, The Board of the company announced a reported net profit after tax of $106.3 million, up 96.7% compared to $54.0 million last year. Adjust net profit after tax (1) for the period was $52.9 million compared to $46.7 million last year, up 13.2%. The company had paid its dividend on March 28, 2013 with the record date of 22 March 2013.

The Warehouse Stationery sales were $111.9 million up 11.8% compared to last year. Same store sales were up 4.2% for the half and 4.7% in the second quarter. Warehouse Stationary continues to experience sales growth from retail footprint expansion and improved earnings performance from existing and recently opened stores.

The Group comprises 92 Warehouse stores, 75 Noel Leeming stores and 59 Warehouse stationery stores in New Zealand. It had turnover of $1.7 billion in F12 and employs over 10,000 people. Its current market capitalization is 1.17 Billion, EPS is 0.46, P/E ratio is 8.27 and the dividend yield is 5.82% at the annual dividend payout of 0.16. The group is listed on New Zealand stock exchange with the symbol of WHS.

Current dividend policy

The Warehouse Group Limited's current dividend policy is to distribute approximately 90% of net earnings. On the other hand where retained earnings are not required to fund growth in the immediate future, the excess cash may be returned to its shareholders by the way of a special dividend. It may also pay the supplementary dividends to the non-resident shareholders, but it depends on the level of imputation credit attached to dividends.

Final thoughts

The Warehouse Group Limited is New Zealand's largest retailer and also one of the largest companies in the country in terms of annual revenue. The group sells many different items which are as possible. It allows the company to grow revenue over its fixed cost base. So the company has begun to sell low margin groceries.

You can find out more dividend data about Best dividend paying stocks in New Zealand, Best dividend stocks in New Zealand, High dividend paying stock new Zealand, New Zealand stocks high dividend from the site http://nz.dividendinvestor.com/

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.