N.Z.’s Meridian to Yield Strong Dividends After IPO, Edison Says
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Meridian Energy Ltd., which is selling shares in New Zealand’s largest initial public offering, faces years of strong cash flow that will underpin its dividends, according to Edison Investment Research.
Weak electricity demand means New Zealand generators have abandoned plans to build new plant, and they are accumulating cash that will be reflected in high dividends, Auckland-based analyst Bruce McKay said in an interview. Meridian forecasts a 2014-15 gross dividend yield of 9.2 percent based on a possible IPO price of NZ$1.60 a share.