Coles shares trade on fully-franked yield of 3.5% after reporting higher profits

The Coles Group Limited (ASX: COL) share price is down almost 5% to $17.78 in early Wednesday trading after the supermarket and liquor group reported full-year sales up 2% to $39.4 billion and net profits after tax up 4% to $1.05 billion.

The company declared a fully-franked final dividend of 30 cents per share, taking total FY22 dividends to 63 cents per share, an increase of 3.3% compared to FY21.

The Coles final dividend will be paid to eligible shareholders on 28th September 2022. Coles shares go ex-dividend on 2nd September 2022. 

Based on the Coles share price of $18, the stock trades at 23 times earnings and on a fully-franked dividend yield of 3.5%.

Looking ahead, like many retailers, Coles faces a number of challenges, including further cost price inflation, COVID-19 and flu staff absenteeism, and rising interest rates placing pressure on many households. 

Coles declined to give a specific outlook, saying it will continue to focus on delivering trusted value to customers. 

Over the past 12 months, Coles shares are flat, compared to a fall of 7.6% in the ASX 200 Index. By contrast, the Woolworths (ASX:WOW) share price has fallen 8% in the last year.

The post Coles shares trade on fully-franked yield of 3.5% after reporting higher profits appeared first on The Motley Fool Australia.

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Motley Fool contributor Bruce Jackson 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 positions in 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 Scott Phillips.

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