Everything you need to know about the latest Westpac dividend

Westpac announced its biggest post-pandemic dividend today.

| More on:
Australian notes and coins mixed together.

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

Key points

  • Westpac released its earnings for the first half of financial year 2022 today 
  • Within the release, the bank announced it will be handing shareholders a 61 cent interim dividend – the biggest payout the bank has offered since 2019 
  • The dividend will be fully franked and means Westpac's stock – at its previous closing price – has a 5% dividend yield 

The Westpac Banking Corp (ASX: WBC) share price appears to be off to the right start this week after the bank upped its interim dividend.

The second largest 'big four' bank increased its half-yearly payment despite reporting that its cash earnings slipped over the first half of financial year 2022 this morning.

It brought in around $3 billion of cash earnings last half – a 12% drop on that of the prior comparable period. Its revenue also slumped 8% to approximately $10 billion.

At the time of writing, the Westpac share price is $24.37, 2.27% higher than its previous close.

So, what do investors need to know about the S&P/ASX 200 Index (ASX: XJO) bank's latest dividend? Let's take a look.

All the details on Westpac's latest dividend

The Westpac share price is in the green after the bank upped its interim dividend to 61 cents per share.

The dividend is fully franked and represents a payout ratio of 69%.

Additionally, considering Westpac's previous closing price, the bank is now trading with a 5% dividend yield.

Interested market watchers have until 19 May to acquire the bank's stock or miss out on receiving the banking giant's upcoming dividend. That's the day the stock will trade ex-dividend.

The dividend will reach investors' bank accounts from 24 June.

The interim dividend announced today is the bank's biggest payout since the onset of COVID-19.

It's 1 cent more than Westpac's final dividend for financial year 2021. It's also 3 cents more than Westpac's previous interim dividend.  

Westpac shareholders also have the option of receiving new shares in the bank instead of a cash dividend.

That option is offered through the bank's dividend reinvestment plan. Shareholders have until 23 May to opt into the plan.

The Westpac share price has gained 12% since the start of 2022. Meanwhile, the ASX 200 has slumped nearly 6%.

Motley Fool contributor Brooke Cooper 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 has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

a man leans back in his chair with his arms supporting his head as he smiles a satisfied smile while sitting at his desk with his laptop computer open in front of him.
Dividend Investing

With a 5% dividend yield, why I think this leading ASX share is a buy

I think this business offers pleasing income with potential capital gains too.

Read more »

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

3 top ASX dividend shares for income investors to buy

Analysts have good things to say about these income options.

Read more »

Woman smiling whilst shopping in a clothing store.
Dividend Investing

Why this quality ASX 300 dividend stock is tipped to surge 54%

A leading fund manager forecasts significant outperformance from this quality ASX 300 dividend stock.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

Why this is one of my top ASX dividend shares to buy in June

This ASX dividend share provides everything I’m looking for.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Dividend Investing

Forget Westpac and buy these ASX dividend shares

Let's see what analysts are saying about these income options.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Dividend Investing

Brokers say Harvey Norman and these ASX dividend stocks are buys

Let's see what brokers are recommending as buys for income investors.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Analysts say these ASX dividend stocks are top buys for income investors

Let's see which stocks are being tipped as buys.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares for 4% to 11% yields

Analysts expect these buy-rated shares to offer great dividend yields.

Read more »