Entrust dividend: Who’s in line for the $360 payout

New Zealand’s largest dividend payout comes from Entrust, with more than $2 billion paid out since 1994. Photo / Getty Images

Hundreds of thousands of Auckland households and businesses will get a payment of $364 from Entrust soon.

The payment to eligible beneficiaries in central, east, and south Auckland consists of this year’s Entrust dividend of $334, plus $30 from Vector, which reported a bumper profit this year.

Depending on the chosen payment preference option, the $364 will either be paid directly into their bank account or credited to their power account, likely later this month.

Entrust is the 75 per cent shareholder of lines and gas company Vector, and each year its beneficiaries, Vector customers within the Entrust District, are paid a cash dividend. This year’s payment is up on last year.

The dividend will be paid to 359,000 eligible Aucklanders and inject $119.9 million into the economy.

“Many Aucklanders have been doing it tough again this year, so this payment has been long-anticipated. It’s great to share the good news that a little help is on its way,” Entrust chair William Cairns said.

Anyone who was an Entrust beneficiary on Wednesday August 9 is eligible for this year’s payment.

People are eligible if, on that date, they were the person/s named on the power bill, which included paying Vector electricity lines charges.

They must also have been located within the Entrust District of central, east, and south Auckland.

If Entrust did not have enough information to make the payment, beneficiaries will be sent a dividend notification asking for bank account details so the dividend payment can be completed.

“We really hope this small financial boost will make things just that little bit easier for those receiving it,” Cairns said.

Entrust (formerly called the Auckland Energy Consumer Trust), owns the majority of Vector on behalf of its beneficiaries.

Last year, 351,000 households and businesses received $273 plus an extra $30 from Vector, injecting $95.8m into the Auckland economy. That was the same as in 2021, but below the $360 paid in 2019.

It is New Zealand’s largest dividend distribution. More than $2 billion has been distributed by Entrust/the Auckland Energy Consumer Trust since 1994.

Vector last month reported a $1.72b net profit for the June 2023 financial year, thanks to a one-off windfall from the sale of half of its metering business.

In June, the lines and infrastructure group confirmed the sale of a 50 per cent interest in Vector Metering to Australian investment manager QIC Private Capital (QIC) for $1.51b.

It will use the sale proceeds to retire debt. Vector’s continuing operations delivered a net profit of $112.6m, exclusive of the metering business.

Earnings before interest, tax, depreciation and amortisation (Ebitda) were $523.3m, including $335.1m from continuing operations. It announced a final dividend of 14.0 cents a share, unimputed, which included a special dividend of 5.5 cents a share.

The full-year dividend for 2023 is 22.25 cents per share.

Auckland-based Vector is the largest lines company in the country and a significant player in the gas business. In Auckland and Wellington, Vector provides high-speed broadband through its fibre optic networks.