Spark New Zealand Ltd. has the ticker symbol SPKKY and is a mid cap member of the communication services sector as a telecom services company. This is my first report on Spark New Zealand Ltd for this Vista folio or any of my five previous portfolios.  

Spark is one of only two large integrated telecommunications companies in New Zealand. 

It is the dominant provider of fixed-line services in the country and effectively an equal-number-one player in the mobile telephony market. 

It also boasts a commanding presence in the New Zealand corporate and wholesale telecommunications services provision space. 

Image Source: Unsplash

Spark's operations are split into four components: Retail (home, mobile, and business), Digital (including IT services), Ventures (investments in technology and innovation), and Connect (infrastructure).

The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. 

Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.

Three key data points gauge dividend equities or funds like Spark New Zealand Ltd. (SPKKY):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

SPKKY Price

Spark New Zealand Ltd's price per share closed at $15.82 yesterday. One year ago its price was $13.01 Price per share has increased about 21.6% from the middle of last year's COVID market slump. 

Should Spark New Zealand Ltd stock trade in the range of $12.00 to $20.00 this year, its recent $15.82 price might rise by $2.18 to reach $18.00 by April 20, 2022. My estimate is however $0.04 higher than the estimate from the one analyst tracking the stock.

SPKKY Dividends

Spark New Zealand Ltd most recent declared a semi-annual dividend, paid Monday, April 19th, is $0.46 which equates to $0.92 annually and yields 5.81% at Monday's $15.82 closing price. SPKKY has paid variable regular and special dividend amounts also varying in frequency from semi-annual to quarterly beginning January 6, 1992, to present, that is, over the past 29 years

SPKKY Returns

Adding the $0.82 annual SPKKY estimated dividend to my $2.18 price upside estimate shows a $3.00potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in Spark New Zealand Ltd at $15.82 per share, we'd buy 63 shares of SPKKY stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.16 per share.

Subtract that maybe $0.16 brokerage cost from my estimated $3.00 gross gain per share results in a net gain of $2.84 X 63 shares = $178.92 for a 17.9% net gain on a $996.66 investment.

Thus, Spark New Zealand Ltd. (SPKKY) shows a possible 17.9% net gain including a 5.81% dividend yield. 

Over the next year at this time, a $1000 investment in SPKKY could generate $58.10 in cash dividends. And a single share bought at yesterday's closing price was about $16! So, if SPKKY is your kind of communication services telecom investment, their single share price is less than one-third of the annual dividend income from $1,000 invested. This suggests now is the time to consider adding Spark New Zealand Ltd. (SPKKY) to your holdings.

All of the estimates above are speculation based on the past history of Spark New Zealand Ltd. (SPKKY). Only time and money invested in this stock will determine its worth.