Electrifying Stocks: Are Contact Energy [NZX:CEN] and Genesis Energy [NZX:GEN] Still Worth Buying Into?

It’s the evening at home while I write this. The central air conditioning is on. Powered by Genesis Energy [NZX:GNE]. I do dread the bill, but I reason that it will be worth it for the respite from Auckland humidity. For the extra productivity and insights I should be able to deliver to you from a cool, calm environment. We’ll see…

New Zealand power companies still pay a great dividend. So much so, international investors have also been drawn to them.

In fact, in December 2020, we noticed asset management giant BlackRock [NYSE:BLK] now owns around 11% of Contact Energy [NZX:CEN].

So, is it still worth investing in the local big e-tailers? In particular, this week, I want to look at two potential income-focused investments:

  • Contact Energy [NZX:CEN]
  • Genesis Energy [NZX:GNE]

And the time to do this is now.

For one thing, the second-term Labour government (supported by the Green Party) is climate-focused. They’re eyeing renewable generation, solar at home, and potentially no new vehicles sold next decade unless they’re EVs.

We’ve learnt a couple of things from monitoring the power situation in Australia and the UK, which may also apply to New Zealand…

 

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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios. Simon is a shareholder of Wealth Morning.


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