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


John looks after marketing and compliance at Wealth Morning. He has worn many hats, working as a customer-service rep, captioning producer, and editorial assistant. He now finds his niche in the area he’s most passionate about: digital publishing. In his free time, he’s a novelist, and his books have appeared on the USA Today and Amazon bestseller lists.


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