South Port New Zealand Limited: A Dividend Stock to Consider Before Its Ex-Dividend

As an income investor, you're always on the lookout for stable, reliable stocks that can provide a steady stream of dividends. One company that might be worth considering is South Port New Zealand Limited (NZSE:SPN). With its upcoming ex-dividend date on February 27, 2025, and a dividend payment scheduled for March 7, 2025, now is the perfect time to take a closer look at this industrials stock.



South Port New Zealand Limited is a dividend-paying company with a current yield of 4.58%, which is well covered by earnings. The company has a strong track record of paying dividends, with a dividend growth rate of 1.4% over the past year. This might not seem like much, but it's important to remember that consistency is key when it comes to dividends. You want a company that can continue to pay and even grow its dividends over time, not one that promises the moon and delivers nothing.

One of the things that sets South Port New Zealand Limited apart is its stable earnings and cash flow. The company has maintained a consistent level of earnings and cash flow over the past five years, which is a strong indicator of its financial health and ability to continue paying dividends. Additionally, South Port New Zealand Limited has a low debt-to-equity ratio of 0.63, which means it has a solid balance sheet and can weather economic storms better than some of its peers.



When it comes to dividends, South Port New Zealand Limited has a payout ratio of 70%, which means it pays out 70% of its earnings as dividends. This is a relatively high payout ratio, but it's important to note that the company has maintained this level of payout for several years, indicating that it's a sustainable practice. Additionally, South Port New Zealand Limited has a free cash flow payout ratio of 14.39%, which means it pays out 14.39% of its free cash flow as dividends. This is a more conservative payout ratio, indicating that the company is maintaining a balance between dividend payments and reinvesting in the business.

So, should you consider investing in South Port New Zealand Limited before its ex-dividend date? If you're looking for a stable, dividend-paying stock with a solid track record and a healthy balance sheet, South Port New Zealand Limited might be a good fit for your portfolio. However, it's important to do your own research and consider your personal financial situation before making any investment decisions. As always, it's a good idea to diversify your portfolio and not put all your eggs in one basket.



In conclusion, South Port New Zealand Limited is a dividend stock worth considering for income investors. With its consistent earnings, stable cash flow, and healthy balance sheet, the company is well-positioned to continue paying and even growing its dividends. So, if you're looking for a reliable source of income, South Port New Zealand Limited might be just the ticket. Just remember to do your own research and consider your personal financial situation before making any investment decisions. Happy investing!