The Wesfarmers (ASX:WES) dividend has jumped by 17%

A solid financial result will see a generous dividend paid out to Wesfarmers shareholders.

| More on:
A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Wesfarmers Ltd (ASX: WES) dividend is on the rise after the company released its FY21 results this morning.

Wesfarmers growth momentum continues in FY21

Wesfarmers delivered a well-rounded result despite concerns that sales would moderate significantly in the second half. Key financial highlights include:

Wesfarmers managing director Rob Scott commented on the company's core retail businesses saying:

Bunnings, Kmart Group and Officeworks delivered strong sales and earnings growth for the year. While customer demand remained resilient, sales growth in Bunnings, Officeworks and Catch moderated from mid-March as the businesses began to cycle elevated demand following the onset of COVID-19 in the prior year.

Pleasingly, sales growth from mid-March remained strong on a two-year basis across all of the Group's retail businesses.

However, the Wesfarmers growth trajectory might face some hurdles in the near term, with management noting:

Given the impact of lockdowns in recent months and the prospect of continued trading restrictions, earnings in the Group's retail businesses during the first half of the 2022 financial year may be below the prior corresponding period.

Wesfarmers dividend jumps 17%

Wesfarmers' directors determined the company would pay a full-franked final ordinary dividend of 90 cents per share, reflecting the company's strong profit performance and dividend policy of distributing franking credits to shareholders.

This brings the company's total FY21 fully-franked ordinary dividend for the full year to 178 cents per share, up 17.1% on FY20.

At today's prices, this represents a dividend yield of approximately 2.78%.

Wesfarmers also announced a proposed return of capital to shareholders of $2.00 per share, subject to approval by Wesfarmers shareholders at its October annual general meeting.

Key dates for Wesfarmers dividend

The Wesfarmers share price will go ex-dividend on Wednesday, 1 September and be paid out on Thursday, 7 October.

Motley Fool contributor Kerry Sun 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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Dividend Investing

Should I buy Santos shares for dividend income?

Santos shares have been steadily upping their dividends since 2020.

Read more »

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Dividend Investing

2 of the best ASX dividend shares to buy in December

Bell Potter rates these dividend shares very highly. Let's see why.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Analysts expect 5% to 8% dividend yields from these ASX stocks

Here's why these dividend stocks could be great options for income investors today.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

5 ASX 200 shares with ex-dividend dates next week

Do you own any of these shares that are primed to pay out?

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

Invested $5,000 in Telstra shares in 2021? Here's how much passive income you've already earned

Atop the share price gains, how much passive income have investors earned from their Telstra stock?

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

Buy Telstra and this ASX dividend stock now

Analysts are saying good things about these dividend stocks. Let's see why they are bullish.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Dividend Investing

Invest $20,000 in 2 ASX dividend shares for $1,500 in passive income

Analysts expect big yields from these passive income shares over the next couple of years.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

These buy-rated ASX 200 dividend shares offer 4.6% to 10% yields

Income investors might want to check out these dividend shares that brokers rate as buys.

Read more »