Westfield Group announces interim dividend

This property powerhouse continues to increase shareholder returns.

Ryan Newman (TMFNewmy)

Ryan Newman (CFA) is the Director of Research of The Motley Fool Australia, and Portfolio Manager for the Pro and North Star services. Ryan’s interest in investing and stocks began at a young. His journey with The Motley Fool started first as a member but when the company first came to Australia he joined the team as one of our writers. Recognising his investing talent and passion, it wasn’t long before he was approached to join the investing team as a research analyst on Pro. Ryan is passionate about learning and continual development. He earned his Chartered Financial Analyst (CFA) designation in 2022, and has completed his Bachelor of Accounting and his Graduate Certificate of Corporate Finance. Ryan loves spending time with his young family as well as non-fiction reading, catching the latest movies and following his sports team, the St Kilda Saints (AFL).

Published August 5, 2013 11:03 am AEST

Australian property group Westfield Group (ASX: WDC) has continued with its commitment to increase shareholder returns, with the company last week announcing a 25.5c interim dividend for the six months ending 30 June 2013.

The dividend compares to the 24.75c dividend paid in the previous corresponding period, with the group expecting to increase its total dividend payouts to 51c per security for the 2013 calendar year – a 3% increase from the 49.5c per share recorded in 2012.

Although the company faced scrutiny earlier in the year regarding the pay packages for Westfield's senior executives, the company has certainly maintained a heavy focus on increasing shareholder value. It has achieved this through the increase in dividend payouts as well as through its daily share buy-back program, in which it repurchased over $1 billion worth of securities.

Since the global financial crisis, the company has realised the need to strengthen its property portfolio by divesting in less profitable stores and using the funds to expand or redevelop its more profitable ones. The funds obtained have also allowed for the increased shareholder returns.

Foolish takeaway

Whilst Westfield has already proven itself as a powerhouse in the property sector, the company also maintains excellent growth potential. In addition, the 51c payout per share gives the company a 4.6% dividend yield, which is an excellent return by any measure. Currently valued at $11.21, Westfield could be an excellent addition to your portfolio.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

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