WiseTech Global (ASX:WTC) just raised its dividend by 141%

WiseTech just bumped its dividend by 141%…

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The S&P/ASX 200 Index (ASX: XJO) has a very active contributor to its performance today. That would come from the WiseTech Global Ltd (ASX: WTC) share price.

WiseTech shares have exploded this morning, up a whopping 40% to $50.68 a share. And investors might have WiseTech's dividend to thank.

The WiseTech share price was up even higher earlier this morning. An hour or so after market open, this WAAAX share hit a new all-time high of $57.31 a share which put the company up more than 58% on yesterday's closing price.

But $50.68 is where the company will stay, at least for now. That's because just before midday, WiseTech announced it has requested a trading halt for its shares "pending a further announcement". That's all we know about that right now.

WiseTech shares explode after 141% dividend increase

So, putting the trading halt aside, what has sparked such a rush into this tech company? WiseTech's FY2021 earnings report of course.

As we covered extensively earlier today, WiseTech delivered its FY21 numbers this morning before market open. And, as evidenced by today's initial share price reaction, they were impressive.

WiseTech managed to deliver an 18% increase in revenues to $507 million, as well as a 63% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $206 million.

But WiseTech also set tongues a wagging with a 141% increase to its final dividend. The company will dole out a payment of 3.85 cents per share, fully franked and representing a payout ratio of 20% of underlying profits, on 8 October.

That will bring the total dividends for FY21 to 6.55 cents per share. That represents an annual yield of 0.13% on the current WiseTech share price.

Even so, this smashes what the company has paid out previously. For example, total dividends for FY2020 came in at 3.3 cents per share. For FY2019, it was 3.45 cents per share.

This new WiseTech dividend could well have contributed to the stunning share price gains investors have enjoyed this morning.

At the current WiseTech Global share price, the company has a market capitalisation of $16.47 billion, and a trailing dividend yield of 0.085%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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