ASX earnings season is continuing with gusto this week. Today, we’ve heard from a number of ASX 200 shares, including JB Hi-Fi Ltd (ASX: JBH). Income investors will certainly want to check out the new JB Hi-Fi dividend.
As we went through this morning, it was a fairly impressive earnings report that we saw from JB today.
The entertainment and appliance retailer posted its numbers for the six months to 31 December. Over this period, JB brought in $6.1 billion in total sales revenue, a solid 7.3% rise over the same period in 2024. JB also revealed earnings before interest and tax of $454 million, up 8.1%. That translated into an earnings per share (EPS) metric of $2.797, up 7.1%.
On the bottom line, JB unveiled a net profit after tax (NPAT) of $305.8 million, also up 7.1%. The company ended the half-year with net cash of $489.5 million on its balance sheet.
The market seems quite chuffed with what JB had to say this morning. That’s going off the fact that the JB Hi-Fi share price is currently up a comfortable 7.56% at $82.48.
But let’s talk dividends.
JB Hi-Fi reveals monstrous record dividend
Income investors will be delighted with the dividend that JB Hi-Fi announced today. The company’s first dividend for 2026 will be worth a record $2.10 per share, its highest dividend ever. As is the company’s habit, this payout will come with full franking credits attached.
This interim dividend represents a 23.5% increase on the $1.70 dividend that was announced this time last year. It is also up 2.44% on the final dividend of $2.05 per share that investors received in September. This dramatic dividend hike was enabled by JB’s change to its dividend policy, first announced last year. From these earnings, the company is aiming to now pay out between 70% and 80% of its net profits as dividends. That’s up from the previous payout ratio policy of 65%. Today’s fresh dividend is right in the middle of that range at 75%.
This new interim dividend will be doled out next month on 13 March. Investors who don’t yet own JB shares have until 25 February this month to secure shares with the rights to this dividend attached. JB will then trade ex-dividend on 26 February. There is no dividend reinvestment plan (DRP) running on this payment though, so investors have no choice but to accept the payout in cash.
Now that we know how much JB Hi-Fi’s latest dividend is worth, the company now trades on a forward dividend yield of 5.03% at the current share price.
The post Up 23%: Everything you need to know about the massive JB Hi-Fi 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 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.