Hoping to bag the next Wesfarmers dividend? You’d better be quick

Shares in Wesfarmers Ltd (ASX: WES) have remained steady since the company reported its full-year results on 26 August.

Despite delivering a mixed financial scorecard, the Wesfarmers share price shrugged off the negative sentiment on the ASX that day.

This is because the conglomerate’s earnings beat the consensus estimate among a number of brokers.

At the time of writing, the conglomerate’s shares are 0.72% higher to $47.74 apiece for the day.

Wesfarmers shares gear up to trade ex-dividend

As the market reels from its heavy losses, investors are sending the Wesfarmers share price into positive territory.

It appears that investors are eager to quickly secure the Wesfarmers dividend as the ex-dividend date fast approaches.

In case you weren’t aware, you’ll have till the end of the day to buy the company’s shares and lock in the dividend.

Although, you can expect the share price to fall tomorrow as when a company reaches its ex-dividend day, investors tend to offload their holdings for a quick profit.

When is payday for Wesfarmers shareholders?

For those who lock in the upcoming Wesfarmers dividend, you’ll receive a payment of $1 per share on 6 October.

The dividend is fully franked and is 11.1% higher than the previous corresponding period (90 cents per share).

This brings the total FY 2022 dividend to $1.80 per share, representing a slight increase on last year’s total $1.78 per share dividend.

Wesfarmers acknowledged that a key component of total shareholder return is the dividends paid to shareholders. After all, investors are highly drawn to quality blue-chip shares that pay dividends.

Wesfarmers’ dividend distributions are based on franking credit availability, current earnings, cash flows, future cash flow requirements and targeted credit metrics.

In that respect, management said that the final dividend reflects a strong second-half net profit after tax result.

It is also the highest final dividend to be paid since September 2018.

Furthermore, shareholders can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate and the last election date for shareholders to opt in is on 2 September.

Wesfarmers share price snapshot

In 2022, the Wesfarmers share price has fallen 20% on the back of tough macroenvironmental conditions in recent months.

The company’s shares reached a year-to-date low of $40.03 on 17 June, before treading higher in the following weeks.

Wesfarmers commands a market capitalisation of roughly $53.74 billion and has a dividend yield of 3.55%.

The post Hoping to bag the next Wesfarmers dividend? You’d better be quick appeared first on The Motley Fool Australia.

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More reading

• 6 ASX shares Morgans would buy right now
• Everything you need to know about the latest Wesfarmers dividend
• Wesfarmers share price lifts as earnings beat brokers’ consensus
• Wesfarmers share price in focus as profit slips to $2.35b
• Earnings preview: Here are the ASX shares reporting today

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 positions in and has recommended Wesfarmers Limited. 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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