Dividend Positivity: Chorus Stock Surges by 5.10%

Chorus Ltd [NZX:CNU] has experienced a stock value increase of over 5% in trading today.

Chorus is one of the largest companies in New Zealand. It is a key provider of telco infrastructure, maintaining everything from copper phone lines to fibre-optic networks.

At the time of writing, it has a market capitalisation of $2.975 billion. Its share price currently sits at $6.705.

 

Why has the [NZX:CNU] stock price gone up today?

The market sentiment became bullish today following a positive announcement by the company.

The management cited financial gains from 2019 to 2020.

Here are the key highlights:

  • Chorus has experienced a half-year net profit increase from $30m to $31m, a change of 3.3%.
  • Shareholders will enjoy a dividend rise of 9.5c to 10c, a change of 5.3%.
  • CEO JB Rousselot declared that Chorus would be more aggressive in its efforts to push out Ultra-Fast Broadband.

What does the future for [NZX:CNU] look like?

In the short- to medium-term, we’ll see a fair amount of enthusiasm for this stock. This comes on the back of Chorus’ success in the roll-out of Ultra-Fast Broadband.

However, there is a level of risk looming on the horizon. Vodafone and Spark have both unveiled plans to transition to 5G fixed wireless.

In the long-term, this creates competition that may just cut into Chorus’ bottom line.

For now, it’s a case of wait-and-see.

 

Regards,

John Ling,

Contributor, WealthMorning.com

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John is the Chief Marketing Officer at Wealth Morning. His responsibilities include marketing, customer service, and compliance. He is an experienced investor and portfolio manager, trading both on his own account and assisting with high net-worth clients. In addition to contributing financial and geopolitical articles to this site, John is a bestselling author in his own right. His international thrillers have appeared on the USA Today and Amazon bestseller lists. John is a shareholder of Wealth Morning.


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