The Lovisa Holdings Ltd (ASX: LOV) share price is climbing again this morning after rocketing on Thursday. Yesterday’s surge came on the back of the company’s impressive FY22 first-half results, in which it also declared a monster dividend for shareholders.
The fashion jewellery retailer’s shares surged to an intraday high of $21.25 on Thursday, before settling back to $18.50, up 11.78% at market close. This morning, its shares are up 6.05% to $19.62 at the time of writing.
Late last year, the Lovisa share price hit an all-time high of $23.07 after the company received a positive broker upgrade.
Below we take a look at Lovisa’s latest financial performance and its huge interim dividend for investors.
What’s the deal with the Lovisa dividend?
In the half-year report for the 2022 financial year, Lovisa reported double-digit growth across key metrics.
In summary, revenue increased by 48.3% to $217.8 million over the previous corresponding period.
Despite being impacted during the first quarter by temporary store closures across a number of markets, comparable store sales momentum continued. This resulted in equivalent store sales up 21.5% on H1 FY21, with 42 new stores opened during the period.
Overall, net profit after tax (NPAT) rose to $36.7 million, a lift of 70.3% compared to $21.5 million in the prior year.
Based on Lovisa’s robust performance, the board declared a 30% franked interim dividend of 37 cents per share. This represents an 85% increase from the 20 cents declared in the prior comparable period.
Management noted that the latest dividend reflects the strong cash outcome and balance sheet position for the first half.
Lovisa ended the calendar year with $52.7 million of net cash and no debt.
When can Lovisa shareholders expect payment?
While it’s a number of weeks away, Lovisa will pay the interim dividend to eligible shareholders on 21 April.
However, to be eligible, you’ll need to own Lovisa shares before the ex-dividend date which falls on Tuesday 8 March. This means if you want to secure the dividend, you will need to purchase Lovisa shares by Monday 7 March at the latest.
It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.
And, in case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.
The post The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know 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 recommended Lovisa Holdings Ltd. 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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