Genesis may struggle to increase turbo charged dividend, says Forsyth Barr

Fri, 21 Mar 2014

By Suze Metherell March 21 (BusinessDesk) – Genesis Energy, New Zealand’s largest energy retailer, is expected to be a strong initial performer when it lists next month because of its attractive near-term dividend yield, but may struggle to offer dividend growth over the longer term, according to brokerage Forsyth Barr. The government plans to sell between 30 to 49 percent of the company at an indicative offer price of $1.35 to $1.65. A “turbo charged dividend” implies a gross yield of 13.5 percent to 16.5 percent in 2015, making Genesis a “...

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