Meridian Energy Limited (ASX: MEZ)Share Price and News
About Meridian Energy
Meridian Energy is New Zealand's largest electricity generator, producing power exclusively from renewable sources: hydro, wind, and solar. The company operates seven hydro stations and five wind farms across New Zealand, supplying electricity to homes, businesses, and industries. Meridian also owns Powershop, an online electricity retailer serving customers in New Zealand and Australia. Committed to sustainability, Meridian focuses on reducing carbon emissions and supporting the transition to a low-emissions economy.
Meridian Energy's Company History
Established in 1998 following the breakup of the New Zealand Electricity Department, Meridian Energy was formed as a state-owned enterprise.
The company was partially privatised in 2013, with shares listed on both the New Zealand Stock Exchange (NZX: MEL) and the Australian Securities Exchange (ASX: MEZ).
Over the years, Meridian has expanded its renewable energy portfolio, investing in wind and solar projects to diversify its generation mix and support sustainable energy initiatives. Today it has seven hydroelectric power stations, and five wind farms.
Future Outlook of Meridian Energy (ASX: MEZ)
Meridian Energy's financial performance in recent years reflects its strategic focus on renewable energy and operational efficiency. The company's commitment to expanding its renewable energy capacity is demonstrated through its investment in the Ruakk Solar Farm, a NZ$227 million project aimed at increasing solar generation capabilities.
Additionally, Meridian's acquisition of customers from Ampol's retail electricity business in 2025 has bolstered its market presence. However, the company faces challenges, including variability in hydro inflows and electricity demand. Monthly operating reports indicate fluctuations in generation volumes due to changing weather patterns. Despite these challenges, Meridian's strong financial position and strategic investments position it well for future growth in the renewable energy sector.
Is MEZ a Good Stock to Buy?
Investors considering Meridian Energy should weigh the company's strengths and potential risks. The stock offers a dividend yield of approximately 3.54%, with recent dividends including a 5.48¢ payment in March 2025 and a 13.25¢ payment in September 2024, both unfranked.
The company's focus on renewable energy aligns with global sustainability trends, and its investments in solar and wind projects support long-term growth. However, investors should consider factors such as weather-related variability in hydro generation and regulatory changes in the energy sector.
Overall, Meridian Energy presents a stable investment opportunity for those seeking exposure to the renewable energy industry, with the potential for steady returns and capital appreciation over the long term.
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Frequently Asked Questions
As of May 2025, Meridian Energy offers a dividend yield of approximately 3.54%, based on recent dividend payments and the current share price.