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5 Kiwi companies you should have on your watchlist

There have been a number of great companies coming out of New Zealand in the past few years. Fortunately for Australian investors, the ASX is a much bigger market and many of the ambitious companies also list here in order to attract more capital for their expansion.

I realised yesterday that the number of NZ-based businesses listed on the ASX is surprisingly large. Here are 6 of the more well-known ones:

a2 Milk Company Ltd (Australia) (ASX: A2M)

Don’t be fooled by the name; at its home base on the NZX, a2 goes by the more plebeian name of a2 Milk Company Limited. It sells healthier dairy products and baby formula that reportedly does not cause the indigestion associated with regular dairy. The company is currently scientifically investigating these claims to see if they have merit.

CBL CORP FPO NZX (ASX: CBL)

A niche insurer with operations predominantly in France and Australia, CBL Corp has a strong balance sheet and is gradually expanding into new markets including the USA. You can find out more about the company in this article.

Genesis Energy Ltd (ASX: GNE)

Genesis is an NZ energy utility operating a variety of hydro and oil and gas assets. It has great free cash flow and pays a tasty 8.4% dividend that appears sustainable.

Gentrack Group Ltd (ASX: GTK)

Gentrack Group is a software business that provides billing and software solutions for energy and water utilities as well as airports. Its software is seen as critical to the running of its client’s businesses, and the company is generally able to make recurring sales to the same customers.

Sky Network Television Ltd (ASX: SKT)

A pay-tv provider facing structural challenges from a plethora of internet video streaming services, Sky nevertheless retains some interesting assets in the form of sports rights, which could help protect it from competition. Like Genesis, Sky also pays a large dividend.

XERO FPO NZX (ASX: XRO)

An accounting software company with global ambitions, Xero is investing heavily in technology to fuel its expansion in the UK and USA, since it already dominates the ANZ region. Yesterday I wrote briefly about why I hold shares.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor Sean O'Neill owns shares of A2 Milk, CBL Limited, and Xero. The Motley Fool Australia owns shares of A2 Milk and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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