Spark New Zealand Ltd. is known by the trading ticker symbol SPKKY and is a member of the communication services business sector as a mid cap telecom services enterprise. This is my second report on Spark New Zealand Ltd for this Vista portfolio. I last reported on SPKKY on April 20th. 

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

Photo by Galen Crout on Unsplash 

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 any company has made, is making, and will make money. 

SPKKY Price

Spark New Zealand Ltd's price per share was $17.13 as of yesterday's market close. One year ago its price was $15.20. So SPKKY's price has jumped about 12.7% in the past year. 

If Spark's stock trades in the range of $15 to $20 this next year, its recent $17.13 price might rise by $0.87 to reach $18.00 by July 14, 2022. My estimate is $0.04 higher than the annual price upside estimate from the analyst tracking SPKKY for a brokerage. 

SPKKY Dividends

Spark's most recent regular semi-annual dividend payout of nearly $0.44 was paid April 19, 2021, and added to the previous semiannual payment projects an $0.85 annual payout yielding 4.97% based on yesterday's $17.13 closing price. SPKKY has paid variable semi-annually for 29.5 years.

SPKKY Returns

Adding the $0.85 annual SPKKY forward-looking dividend to my $0.87 price upside estimate shows a $1.72 potential gross gain, per share, to be reduced by any costs to trade Spark New Zealand Ltd. shares.  

At yesterday's $17.13 price per share, a little under $1000 would buy 58 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $1.72 gross gain per share results in a net gain of $1.55 X 58 shares = $89.90 for a 9% net gain on a $993.54 investment.

So it is that Spark New Zealand Ltd. shows a possible 9% net gain including a 4.97% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in SPKKY could generate $49.70 in cash dividends alone. And a single share bought at yesterday's closing price was $17.13! Thus, SPKKY's share price is about 34% of dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up SPKKY because the dividend from $1k invested exceeds the single share price by about 67%. Consider yourself alerted.

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 true worth.