Woolworths Limited (ASX: WOW) is one of the most widely held stocks on the ASX, although it doesn't come close to Telstra Corporation Ltd (ASX: TLS) with its 1.4 million shareholders! However like Telstra, Woolworths is very much a 'blue-chip' stock. Exactly what makes a company blue chip is debatable, however it is generally a term reserved for the very largest listed companies which have wide customer bases that provide a solid base for maintainable revenues, earnings and dividends.
Having already grown large and strong, blue chips are also mature businesses. Generally this relegates them to slow growth status; however slow and steady is not a terrible outcome as a review of the past 10 year share price and dividend growth for Woolworths proves.
In 2004
- The CEO at the time was Mr Roger Corbett, he earned $4.15 million
- Total store numbers stood at 1,700; trading area square metres were 2.3 million and sales per square metre for the supermarket division was $13,549.20
- Sales Revenue was $27.9 billion
- Earnings per share were 70.1 cents per share (cps)
- Dividends of 45 cps were paid
- Return on funds employed was 49.3%
- Over 321,000 shareholders were on the register
- The share price in February 2004 was around $11.50
And Now
- The current CEO Mr Grant O'Brien was paid $5.68 million in financial year (FY) 2013.
- Total stores currently stand at 3,182, trading area square metres is 3.9 million and sales per square metre for the Australian supermarket division (in FY 2013) was $15,972.90
- Sales Revenue should surpass $59 billion for the year ending 30 June 2014
- Earnings per share are forecast according to one consensus estimate at 196.2 cps for FY 2014
- Dividends of 140 cps are expected to be paid for FY 2014
- Return on funds employed in FY 2013 were 27.6%
- There are currently over 423,000 shareholders
- The share price is currently $34.89
Foolish takeaway
Not only has Woolworths provided shareholders with capital gains and growing dividends but it has also significantly outperformed the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO). In the past decade the share price is up nearly 203% (which excludes dividends of course) while the index has gained just under 60%.
