It’s a good day to be a Coles Group Ltd (ASX: COL) shareholder. Not just because this S&P/ASX 200 Index (ASX: XJO) grocery giant is currently up by 0.33% at $18.02 a share. But because today is the day that shareholders will receive Coles’ latest dividend payment.
As you might expect from an ASX blue chip with a mature business model, Coles is a strong dividend payer. During its last earnings report that was delivered in February, Coles announced its results for the six months ending 31 December.
This report card was something of a mixed bag. Coles reported a 1% increase in revenues, but higher costs ate into its earnings and profits, which fell by 4.4% and 2% respectively. However, the company also announced its interim dividend for the 2022 financial year.
This was a fully franked dividend worth 33 cents per share. That was flat on last year’s interim dividend of the same value. The shares went ex-dividend for this payment on 3 March, meaning any investor who opened a Coles position on or after this date misses out on this dividend when it hits bank accounts today.
Even though today’s dividend is flat on last year’s interim payment, it does represent an increase on Coles’ last final and fully franked dividend of 28 cents per share.
Together, these give Coles shares a trailing yield of 3.3% on current pricing. That’s 4.85% grossed-up with that full franking.
Will Coles raise its dividend next year?
Since its float back in 2018, Coles has built a solid reputation as an ASX dividend share. This latest payout is actually the first time Coles hasn’t delivered a year-on-year interim dividend increase. But perhaps dividend investors shouldn’t despair just yet.
As we covered earlier this month, ASX broker Citi is still forecasting Coles will raise its final dividend for FY22 to 32 cents per share, which, at an FY22 total of 65 cents per share, would still mean Coles’ annual dividends will keep rising. It’s also pencilling in 72 cents per share in dividends in FY23, complete with a buy rating and a 12-month share price target of $19.30. That implies a share price upside of around 7.5% over the next year.
At the current Coles share price, this ASX 200 consumer staples share has a market capitalisation of $23.98 billion.
The post The Coles (ASX:COL) dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.
Should you invest $1,000 in Coles right now?
Before you consider Coles, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Top brokers name 3 ASX shares to buy today
- Budget fuel excise cut: Which ASX shares could benefit?
- Top broker gives its verdict on the Coles (ASX:COL) share price
- Could these ASX shares get a boost from tonight’s federal budget?
- Is the Coles (ASX:COL) share price a top buy for dividends?
Motley Fool contributor Sebastian Bowen 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 owns and has recommended COLESGROUP DEF SET. 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/p4Dw3iN
Leave a Reply