The Woolworths Group Ltd (ASX: WOW) share price has fallen 6.1% this year, hitting a 52-week low of $33.45 in late January.
At Thursday’s market close, Woolworths shares finished the day up 0.03% to $35.69.
The S&P/ASX 200 Index (ASX: XJO) has also shed 6.1% over the same time frame. Inflationary issues with incoming rate hikes and geopolitical tensions between Russia and Ukraine have likely contributed to the downfall.
Nonetheless, Woolworths released its half-year results for FY22 on Wednesday, with its share price pushing higher despite a softened performance.
Below we consider if it’s worth investing in the retail conglomerate’s shares for its latest interim dividend.
Woolworths recent dividend history
Since this time last year, Woolworths has paid total dividends to shareholders of $1.08 per share. This consists of FY21’s interim dividend of 53 cents per share and the final dividend of 55 cents per share.
Based on the current Woolworths share price, this translates to a dividend yield of around 3.23%. And this doesn’t include that all its dividends are fully franked which is an added bonus in offsetting future tax liabilities.
What about Woolworths’ latest interim dividend?
While Woolworths reported its results for the front-end of FY22, the board declared an interim dividend of 39 cents per share. Albeit, a reduction of 26.4% when compared to the prior corresponding period. This is scheduled to be paid to shareholders on 13 April. However, you must own Woolworths shares before the ex-dividend date on 3 March to be eligible for the dividend.
On a positive note, management noted that, in total, $3.2 billion is set to be returned to shareholders in FY22. This comprises $1.17 billion in dividend payments and the $2 billion off-market share buyback program completed in October 2021.
How is the Woolworths share price valued?
After the company delivered its half-year results to the ASX, a number of brokers weighed in on the Woolworths share price.
Analysts at Citi upgraded their view to “buy” from “neutral” with a 12-month price target of $40.30, up 3.3%. Based on the current share price, this implies a potential upside of almost 13%.
In addition, Jefferies also lifted its outlook on Woolworths to “buy” from “hold”, signalling a similar price of $40.00 per share, up 8.1%.
Macquarie, on the other hand, had a more bearish tone, reducing its rating by 4.5% to $38.20.
And lastly, Swiss investment firm, UBS slashed its rating by 2.9% to $34.00. This implies a 4.8% downside on the current Woolworths share price.
The post Should you buy Woolworths (ASX:WOW) shares now for the dividend yield? appeared first on The Motley Fool Australia.
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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 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 Bruce Jackson.
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