The final Wesfarmers (ASX:WES) dividend will be paid out today. Here's what you need to know

Wesfarmers shareholders have something to look forward to today.

| More on:
a happy child dressed in full business suit gives the thumbs up sign while sitting at a desk featuring a piggy bank and a sack of money with a dollar sign on it.

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 will finally hit the accounts of shareholders on Friday. This might be one of the few bright spots for Wesfarmers in recent months as its share price has plunged back down to 4-month lows.

The Wesfarmers share price closed at $54.07 on Wednesday, down almost 20% since its all-time high of $57.20 on 20 August.

What happened to the Wesfarmers share price?

The S&P/ASX 200 Index (ASX: XJO) topped out in mid-August after reaching all-time highs of 7,633.

The decline of Wesfarmers was consistent with that of the broader market.

The company's FY21 full-year results was another major driver of its recent underperformance.

At face value, Wesfarmers had a standout year, delivering a 10% increase in revenue to $33,941 million, net profit after tax increased 16.2% to $2,421 million, as well as a final dividend of 90 cents per share.

The overall Wesfarmer dividend for FY21 came in at 178 cents, up 17.1% on FY20.

But looking ahead, Wesfarmers management flagged the prospect of weaker near-term earnings as a result of recent lockdowns and the cycling of elevated sales.

"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," management said.

What else do investors need to know about the Wesfarmers dividend?

Last week, Wesfarmers announced that $57.06 will be the allocation price for shares issued through the dividend investment plan for its final dividend.

According to the release, shareholders representing 11.72% of Wesfarmers shares on issue had a valid election to participate in the dividend investment plan for the period.

Shares are expected to be issued to participants of the dividend investment plan on 7 October.

But wait there's more …

Wesfarmers' FY21 results also revealed a significant capital return to shareholders in the form of a 200 cents per share payment on top of its final dividend.

The proposed capital return is subject to shareholder approval at the company's 2021 annual general meeting.

If all goes to plan, the capital return date is expected to have a record date of 19 November 2021 and payable by 2 December 2021.

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 investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

Looking for passive income amid falling interest rates? Check out this top ASX All Ords dividend stock

This high-yielding ASX dividend stock can help boost your passive income amid falling interest rates.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Dividend Investing

Down 34% since 2021, does this ASX dividend share still offer investors a 10% yield today?

There are a few warning signs over this stock.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Down 26%, Bell Potter says this ASX 200 dividend share is a buy

Major upside and big dividend yields are forecast from this stock.

Read more »

Two businessmen look out at the city from the top of a tall building.
Dividend Investing

With an 8% dividend yield, is this ASX dividend share a buy?

This business offers investors significant potential passive income.

Read more »

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

Brokers name 3 top ASX dividend shares to buy

What are analysts tipping as buys? Let's find out.

Read more »

Couple holding a piggy bank, symbolising superannuation.
Dividend Investing

3 strong ASX dividend shares to buy in June

Brokers rate these shares as buys for income investors.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

This ASX dividend giant recently hit a 52-week low, is it a buy?

Is it time to climb aboard with this stock?

Read more »

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
Dividend Investing

1 ASX dividend stock down 14% I'd buy right now

This business may be undervalued by the market.

Read more »