Everything you need to know about the record Cochlear dividend

ASX earnings season continues this week, with ASX 200 healthcare stock Cochlear Ltd (ASX: COH) reporting its latest numbers this morning.

As we covered at the time, investors didn’t really like what Cochlear had to say. The company’s shares are currently down a hefty 2.16% at $327.30 each.

That was despite Cochlear revealing a 20% rise in revenues for the half-year ending 31 December. Underlying net profits also rose enthusiastically, up 21% year on year to $192 million.

Perhaps investors are disappointed that Cochlear has decided to pause its share buyback program. But there are probably not too many investors that would feel let down by what Cochlear announced in the dividend department.

Cochlear revealed this morning that its next interim dividend would be worth $2 per share, partially franked at 70%.

Everything you need to know about Cochlear’s record interim dividend

This is a pretty special dividend for Cochlear, as it’s the largest single shareholder payout in the company’s history. For one, it represents a 14.3% increase over last year’s final dividend of $1.75 per share. But it’s also a 29% spike over last year’s interim dividend of $1.55 per share.

Cochlear shares are scheduled to trade ex-dividend for this upcoming payment next month on 21 March. So for anyone who wants to bag this dividend but doesn’t presently own Cochlear shares, 20 March is the last day you can buy shares with the rights to this dividend attached.

Investors wishing to receive additional Cochlear shares instead of a cash payment will be disappointed though. Cochlear is not currently running a dividend reinvestment plan (DRP). So receiving the cold hard cash is the only option.

Payday will then roll around on 15 April.

This upcoming payment is set to have a decent impact on the company’s dividend yield. At the current share price, Cochlear shares are trading on a trailing yield of 1.01%, but with this dividend factored in, the company now has a forward yield of 1.15%.

The post Everything you need to know about the record Cochlear dividend appeared first on The Motley Fool Australia.

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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 positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. 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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