SEEK (ASX:SEK) dividend rebounds to a 3-year high, what it means for shareholders

The SEEK Limited (ASX: SEK) share price is feeling the full force of positive investor sentiment today.

At the time of writing, shares in the employment marketplace provider are trouncing the broader S&P/ASX 200 Index (ASX: XJO). Specifically, SEEK shares are up 8.1% from their previous close to $30.04. In contrast, the benchmark index is heading south to the tune of 0.5%.

No doubt market participants were impressed with the company’s earnings. SEEK reported a 147% uplift in net earnings after tax (NPAT) to A$124 million. Whereas, analyst consensus had anticipated earnings of $101 million.

However, a freshly declared dividend could be the real music to shareholders’ ears today.

SEEKin’ better dividends, look no further

Shareholders of ASX-listed SEEK can rejoice in the fact that the company is busily restoring its dividends to its former glory. Payouts are getting a boost again amid SEEK’s first-half results.

This follows a treacherous time for shareholders chasing dividends from the Australian job listing company in 2019 and 2020. Prior to the pandemic, SEEK made a change in its dividend policy to reduce the amount handed out. In turn, the payout ratio fell from between 50% and 60% of profits to between 30% and 50%.

As we all know, COVID-19 then crushed global economies, resulting in SEEK scrapping a final dividend in FY20. This resulted in a minuscule payment of 13 cents per share in 2020. For comparison, the company dished out 68 cents per share in 2018.

However, the company has since returned to profitability. Likewise, dividends have begun to spring back to life. In 2021, SEEK handed out 40 cents per share, 20 cents of that being in the form of an interim dividend.

Today, the company declared a fully franked dividend of 23 cents per share — representing an increase of 15% from the prior corresponding period. Furthermore, this marks the highest dividend paid to shareholders in three years.

According to the release, this interim dividend comes with a record date of 24 March 2022. If on the register by then, shareholders will receive the dividend payment on 7 April 2022.

Additionally, the company highlighted this payment is within its payout policy of 75% of cash NPAT less capital expenditure.

How about the SEEK share price?

Unfortunately for shareholders, the SEEK share price has been an underperformer over the past 12 months. While the index has managed to push 5% higher, the job listing platform has fallen 5%.

It has been a similar story for the first two months of trading in 2022. SEEK shares have taken a trip 12% lower, while the ASX 200 has only slipped 4.9%.

The post SEEK (ASX:SEK) dividend rebounds to a 3-year high, what it means for shareholders appeared first on The Motley Fool Australia.

More reading

• Seek (ASX:SEK) share price leaps 8% as revenue soars
• ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX tech shares to pounce on NOW while they’re cheap
• SEEK (ASX:SEK) share price tumbles on broker sell rating. Here’s why it is bearish

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/JeQ3XlA