Wesfarmers shares: Here are the dividend forecasts for 2023 and 2024

How much dividend income are investors expecting from the owner of Bunnings?

| More on:
A woman looks quizzical while looking at a dollar sign in the air.

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

  • This is the business that owns brands like Bunnings, Kmart and Officeworks
  • Wesfarmers is expected to pay a $1.86 dividend per share, equating to a 5.4% grossed-up dividend yield
  • In FY24 it might pay a $1.94 dividend per share, translating into a grossed-up dividend yield of 5.6%

Wesfarmers Ltd (ASX: WES) shares have been paying good dividends to investors for many years. Shareholders may be wondering how much dividend income they're going to get over the next year or two.

There's no guarantee that a dividend will be paid, but if a business has historically been committed to paying dividends, then that could be a good indication that the shareholder payments will continue.

Dividends are decided by the board of a company, though the profitability of the business can have a big impact on whether the dividend is increased, cut, or maintained.

Although the Wesfarmers share price has dropped over the past year, the dividend income is predicted to continue to remain strong.

Created with Highcharts 11.4.3Wesfarmers PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Payout expectations

According to the dividend forecast on Commsec, Wesfarmers shares might pay an annual dividend per share of $1.86, which would represent a year over year increase of 3.3%.

If the company does pay that annual dividend per share, this would translate into a grossed-up dividend yield of 5.4% for FY23.

After that, the business is projected to grow the dividend again to $1.94 per share. That would represent a year over year increase of 4.3%, and it would be 7.8% higher than FY22.

At the current Wesfarmers share price, the FY24 grossed-up dividend yield could be 5.6%.

For readers that are interested, the FY25 estimated annual dividend per share is $2.02 per share. If that happened, it could be a 4.1% increase.

How likely is it that Wesfarmers will grow its dividend?

One of the company's aims is to grow the dividend over time. Wesfarmers said:

With a focus on generating strong cash flows and maintaining balance sheet strength, the group aims to deliver satisfactory returns as shareholders through improving returns on invested capital. As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow. Dependent upon circumstances capital management decisions may also be taken from time to time where this activity is in shareholders' interests.

Foolish takeaway

Wesfarmers is one of the leading ASX blue-chip shares with a number of quality businesses like Bunnings, Kmart, Officeworks and Priceline. It may be able to keep paying good passive income for a number of years.

Should you invest $1,000 in Wesfarmers Limited right now?

Before you buy Wesfarmers Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Wesfarmers Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Wesfarmers. 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

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

2 high-yield ASX dividend stocks you can buy and hold for a decade

Analysts think these buy-rated stocks could generate big income.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Dividend Investing

Coles dividend: Everything you need to know about the new supersized payout

A record payout is coming investors' way.

Read more »

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

Here are 2 ASX dividend shares with yields above 8%

I think these stocks offer some of the biggest yields on the ASX.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Travel Shares

Qantas dividend returns as shares near record high

The Flying Kangaroo's shareholders are smiling on Thursday.

Read more »

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

1 ASX dividend stock down 24% I'd buy right now

I think this dividend payer looks undervalued.

Read more »

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

Brokers name 2 ASX dividend stocks to buy now

Let's see what brokers are saying about these income stocks.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Bank Shares

Is NAB stock a buy for its dividend yield right now?

NAB's dividend yield remains lucrative.

Read more »

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

5 ASX dividend shares to buy with $5,000 now

Let's see what analysts are tipping as buys for income investors with money to put into the market.

Read more »