It's another rough day for the Adairs Ltd (ASX: ADH) share price, adding to the stock's recent turmoil.
At the time of writing, the Adairs share price is $1.995. That's 2.68% lower than its previous close and 50% lower than at the start of 2022.
For context, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.2% today and has slipped 11% year to date. The All Ordinaries Index (ASX: XAO) is also up 0.2% and nearly 13% lower than it was at the start of this year.
But there's a notable silver lining for the home furnishing retailer's shares. The stock's downturn has left it trading with a dividend yield of 9%.
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Adairs shares offer a 9% dividend yield
Considering the current Adairs share price and the company's two latest dividends totalling 18 cents per share, the stock is boasting a 9.02% dividend yield.
Adairs announced it would pay investors a 10-cent final dividend for financial year 2021 in August 2021. Then, in February, it declared an 8-cent interim dividend.
Both dividends were fully franked. That means they provide shareholders with even more value at tax time.
Additionally, Adairs offered a dividend reinvestment plan (DRP) for its most recent payout. That allowed some investors to receive their dividends in the form of new shares rather than cash – thereby cost-effectively increasing their holding in the company.
The last time the market heard price-sensitive news from the retailer was the release of its half-year results in February.
Then, the company noted COVID-19 outbreaks had dinted its earnings. Plenty of eyes will likely be on Adairs in coming months to see if the inflationary environment and interest rate hikes have also taken a toll on its bottom line.
