Entrust, majority owner of Vector, today announced its annual dividend of $350, and confirmed that it has no plans to reduce its shareholding in Vector.

William Cairns, Entrust Chairman, says Entrust is committed to maintaining its stake in Vector, as well as the ongoing payment of dividends to the community, based on Vector’s financial performance.

“We are not selling down. End of story.”

The dividend is driven by the financial performance of Vector and will be paid in late September to more than 331,000 people and businesses in the Entrust district (encompassing Auckland, Manukau, northern parts of Papakura and eastern Franklin) that are connected to Vector’s electricity network. 

Also added to the Entrust dividend payment this year is $30 from Vector, which is customers’ fair share of the credit received from Transpower, known as loss rental rebates.

Since 1993, Entrust dividends have boosted Auckland’s economy by more than $1.6 billion.

“We are pleased to have made such a major contribution to Auckland over 25 years, “ says Mr Cairns.

“Our 2018 dividend will deliver nearly $116 million to the hardworking people and businesses in our district, with much of it spent in local neighbourhoods.

“Since 1994 dividends have increased from $115 to $350. Vector’s nationwide investments in smart metering technologies, gas trading and telecommunications have strongly contributed to its diversification strategy and growth in value, which is reflected in dividend growth.

“Entrust protects Aucklanders’ investment in Vector. There is strong support for Entrust across the Auckland region, with 78% of all Aucklanders believing the Entrust structure should remain. People tell us that the dividend makes a difference, and we’re proud to support our community this way.”

This year’s dividend is $350, the same as 2017. As Auckland grows, so does the population in Entrust’s district. With an additional 4,000 beneficiaries this year, the total payment to the community via the dividend is $1.4 million higher than last year’s payment of just over $114 million.

The dividend distribution (New Zealand’s largest) comes from Entrust’s majority shareholding in Vector. Entrust, formerly known as the Auckland Energy Consumer Trust, was formed in 1993.