1 ASX 200 dividend stock down 13% in 2024 to buy right now

If you’re on the lookout for a beaten-down S&P/ASX 200 Index (ASX: XJO) dividend stock there’s a good chance you’ve frequented this one recently.

The passive income stock in question is ASX 200 supermarket giant Woolworths Group Ltd (ASX: WOW).

The Woolworths share price has taken a beating in 2024. At market close yesterday, shares in the ASX 200 dividend stock were down 13.2% year to date, trading for $32.57 apiece.

As you can see on the above chart, the Woolworths share price was down 4.4% heading into 20 February.

That’s when the real pain began.

Woolies released its half-year financial results on 21 February. And ASX 200 investors reacted by sending the share price down 6.6% on the day.

Although revenue was up by 4.4% year on year to $34.64 billion, losses after significant items came soared to $781 million, hit by a $1.5 billion non-cash write-down of Woolies’ New Zealand business.

In the first half of FY 2023, Woolworths reported a profit of $845 million.

Also likely spooking investors on the day was the shock announcement that CEO Brad Banducci was stepping down from the lead role after more than 13 years with the company and more than eight years as CEO.

So, why do I think this ASX 200 dividend stock is one to buy today?

Well, despite sales continuing to moderate during the first seven weeks of 2024, I’m confident this pain will pass over the medium term as cost of living pressures invariably ease.

And with an eye on passive income, I was pleased to see Woolworths up its fully franked interim dividend by 2% from last year’s interim dividend.

With an eye on the growth-driving potential of Woolworths’ digital offerings, Goldman Sachs also has a bullish take on the stock.

The broker has a buy rating on Woolworths shares with a $40.40 price target. That implies a potential 24% upside from current levels.

So, how about those dividends?

What is the ASX 200 dividend stock yielding?

Atop the 24% potential increase in the Woolworths share price, the company paid a 58 cent per share final dividend on 27 September. And the boosted interim dividend of 47 cents per share will hit eligible investors’ bank accounts on 11 April.

That equates to a full-year payout of $1.05 per share.

At Tuesday’s closing price, that sees this beaten-down ASX 200 dividend stock trading on a fully franked trailing yield of 3.2%.

The post 1 ASX 200 dividend stock down 13% in 2024 to buy right now appeared first on The Motley Fool Australia.

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More reading

• Buy Woolworths and these ASX dividend shares
• Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list
• Top ASX shares to buy in March 2024
• Is the Woolworths share price too good to pass on?
• Here are 2 ASX shares to buy for a golden retirement

Motley Fool contributor Bernd Struben 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 Goldman Sachs Group. 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.

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