Has the JB Hi-Fi dividend been worthwhile in the past 5 years?

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five yearsA woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years

Despite falling 16.5% so far in 2022, the JB Hi-Fi Limited (ASX: JBH) share price has gained modest value over the past five years — up by almost 65%.

The retailer’s shares hit an all-time high of $56.85 on 30 March but have since tumbled due to extreme market volatility and negative sentiment.

Investors have expressed their concerns about a possible recession due to high inflation levels and rate hikes by the Reserve Bank.

For context, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down by 21% this year.

Nevertheless, while the JB Hi-Fi share price trades near 52-week lows, have the dividends been worthwhile over the long term?

JB Hi-Fi dividend history

Regardless of the company’s recent share price weakness, the JB Hi-Fi board has continued to increase its dividends to shareholders.

Below, we take a look at the past five years’ worth of dividends from JB Hi-Fi.

  • September 2017 – 46 cents (final)
  • March 2018 – 86 cents (interim)
  • September 2018 – 46 cents (final)
  • March 2019 – 91 cents (interim)
  • September 2019 – 51 cents (final)
  • March 2020 – 99 cents (interim)
  • September 2020 – 90 cents (final)
  • March 2021 – $1.80 (interim)
  • September 2021 – $1.07 (final)
  • March 2022 – $1.63 (interim).

Calculating the above JB Hi-Fi dividends since 2017 gives us a total figure of $9.59 for every share owned. That’s almost a quarter of the value of JB Hi-Fi’s last traded share price – $40.77.

Even without factoring in the 63.7% capital gain delivered to investors since 2017, the JB Hi-Fi dividend has shown its worth – particularly since 2021.

JB Hi-Fi share price snapshot

Over the past 12 months, JB Hi-Fi shares have lost 15% following tough macroenvironmental conditions.

JB Hi-Fi has a dividend yield of 6.62% which is one of the highest yields for an ASX 200 company.

In terms of market capitalisation, the company is valued at approximately $4.45 billion.

The post Has the JB Hi-Fi dividend been worthwhile in the past 5 years? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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