One of the biggest news stories on the ASX 200 today is the half-year results of ASX blue-chip share Coles Group Ltd (ASX: COL). Coles, one of the more famous companies on the ASX 200, reported its results this morning, covering the six months to 31 December 2022.
As we went through this morning, Coles' results impressed the market on open. At present though, the Coles share price has slipped into the red, down 1.28% to $18.065:
About Coles Group
Last updated 27-12-2024, 04:00:00pm AEDTJust to reiterate, the grocer announced a 17.1% rise in net profit after tax (NPAT) to $643 million, as well as a 9.9% rise in earnings before interest and tax to $1 billion. This enabled earnings per share (EPS) to surge 17.2% to 48.3 cents per share.
Interestingly, Coles has also announced a new CEO. Leah Weckert will be taking over from Steven Cain in May. Weckert will be the second CEO of Coles as a public company.
But let's talk dividends.
Coles has built a reputation for itself as a dividend heavyweight since listing on the ASX in its own right back in 2018. The company has been steadily raising its dividend every year.
In 2020, the grocer doled out an annual total of 57.5 cents per share. But in 2021, Coles raised this to 61 cents per share, and again ratcheted it up to 63 cents per share in 2022.
On the back of these latest numbers, Coles has kept the train rolling. The company has announced that its first dividend for 2023 will come in at 36 cents per share, fully franked.
That's a pleasing 9.1% rise over the interim dividend of 33 cents per share that Coles paid out last year. It's also the largest single dividend Coles has ever paid out.
Coles keeps its dividends rolling in
This latest dividend payment will be arriving in investors' bank accounts on 30 March next month. But if investors are desperate to receive it, they will need to own Coles shares before the ex-dividend date of 2 March.
That's when new investors will be shut out from this dividend payment. So expect to see a sizeable drop in the Coles sales price on its ex-dividend date, reflecting the loss of the value of this dividend for future shareholders.
Investors also have until 6 March to decide if they wish to participate in Coles' optional dividend reinvestment plan (DRP). If the DRP is chosen, shareholders can receive additional Coles shares in lieu of a cash payment.
This latest payment will give Coles a trailing annual dividend of 66 cents per share when it arrives in investors' hands next month, combined with last year's final dividend of 30 cents per share.
At the current Coles share price of $18.42, this latest dividend will give Coles a forward dividend yield of 3.58%. That's 5.11% grossed up with those full franking credits.
