The JB Hi-Fi Limited (ASX: JBH) share price is under pressure on Monday morning.
At the time of writing, the retail giant's shares are down 1% to $47.75.
This is despite the JB Hi-Fi dividend getting a major lift today.
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Why is the JB Hi-Fi share price under pressure?
The weakness in the JB Hi-Fi share price today has been driven by the release of its full year results for FY 2021.
In a largely pre-released result, JB Hi-Fi reported a 12.6% increase in sales to $8.9 billion and a 67.4% jump in net profit after tax to $506.1 million.
Management advised that its top line growth was driven largely by heightened customer demand for consumer electronics and home appliances products. This was complemented by significant margin expansion thanks to its continued focus on productivity, disciplined cost control, and leveraging scale.
What about the JB Hi-Fi dividend?
In light of its strong earnings growth, the JB Hi-Fi dividend was increased materially year on year.
The retailer declared a final fully franked dividend of 107 cents per share, which was up 18.9% on the prior corresponding period. This took the full year JB Hi-Fi dividend to a fully franked 287 cents per share, which is up 51.9% year on year.
Based on the current JB Hi-Fi share price, this represents a 6% dividend yield.
Why are its shares falling?
The weakness in the JB Hi-Fi share price is likely to have been driven by its trading update for the first six weeks of FY 2022.
The release reveals that, compared to the same period last year, total sales are down 14.6% for JB Hi-Fi Australia and 8.1% for The Good Guys. The JB Hi-Fi New Zealand business is performing more positively, with sales up 8.4% for the period.
And while no guidance was given for the year ahead, it is fair to assume that if its performance does not pick up in the coming months, the JB Hi-Fi dividend could be lower in FY 2022.
