Is Adairs considered an ASX 300 dividend share?

A woman looks questioning as she puts a coin into a piggy bank.A woman looks questioning as she puts a coin into a piggy bank.

The Adairs Ltd (ASX: ADH) share price has been in focus for a few months now for many ASX investors. That’s what happens when a company’s shares fall almost 60% over 2022 thus far (as of a few weeks ago). But, more recently, Adairs shares have been bouncing back with a vengeance.

Since hitting a new 52-week low of $1.65 a share in mid-June, the Adairs share price has now recovered by an impressive 43%, going off the $2.36 price it is commanding at the time of writing.

Many investors watching this rollercoaster ride might be wondering if Adairs is an ASX 300 dividend share. Well, let’s answer that today.

So, first things first. Adairs is an ASX 300 share, by virtue of its presence on the S&P/ASX 300 Index (ASX: XKO). Its market capitalisation of just over $400 million isn’t enough to have Adairs qualify for the more popular and widely-used S&P/ASX 200 Index (ASX: XJO).

But it does make the cut for the ASX 300, which means an ASX 300 ETF like the Vanguard Australian Shares Index ETF (ASX: VAS) has Adairs shares in its portfolio.

But what of dividends?

Is ASX 300 retailer Adairs a dividend share?

The answer to that question is also a resounding yes. Adairs is indeed a dividend share and has been paying out dividends to its shareholders for years now. This has been the case ever since Adairs listed on the ASX boards back in 2015.

Since the company’s inaugural dividend payment in April 2016, Adairs has only missed a biannual dividend payment once – the period covering the first six months of COVID-ravaged 2020. Adairs resumed paying out dividends in the second half of 2020 and has been doing so ever since.

Adairs’ last dividend payment arrived on 14 April this year. This was an interim dividend worth a fully franked 8 cents per share. The previous final dividend that investors saw in September last year came to a fully franked 10 cents per share.

Together, the 18 cents per share that Adairs has paid out over the past 12 months gives this retail share a trailing dividend yield of 7.36% (or 10.9% grossed-up) at the current Adairs share price of $2.36.

Now those (objectively impressive) metrics are past-facing. We do not yet know what kind of dividends Adairs will pay in the future. If the company trims its next two dividends, then investors won’t be enjoying a 7.36% dividend yield going forward.

But if Adairs maintains or even increases its dividends over the next year, then income investors will no doubt be a very happy lot.

But we shall just have to wait and see what happens with this ASX 300 retail share.

The post Is Adairs considered an ASX 300 dividend share? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Sebastian Bowen has positions in ADAIRS FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s