Spark Shares Plunge Amid Profit Concerns and Dividend Increase

Spark New Zealand Ltd (NZX: SPK) has seen its stock drop significantly, becoming one of the worst-performing stocks on the NZX in the past month. Following the announcement of a weaker-than-expected profit on August 23, the company raised its final dividend despite insufficient cash flow to support the previous dividend rate. This has led to a sharp decline in Spark’s share price, which traded at $3.01 on Tuesday morning and is at risk of falling below $3 for the first time in a decade. Investors are concerned about Spark's dividend policy and overall financial health, leading to further uncertainty. At the time of writing, the company is facing questions about its long-term outlook.

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