SHL’s Principal Activity is the provision of medical diagnostic services and the provision of administrative services and facilities to medical practitioners. 2021 has been a stellar year for the group. Sonic Healthcare Dividend Report
Sonic Healthcare Dividend Summary
| DPS | $0.91 |
| Gross DPS | $1.1095 |
| Dividend yield | 2.33% |
| Gross yield | 2.84% |
| Payout Ratio | 33% |
| DRP | Yes- Suspended |
| DRP Discounts | No |
Sonic Healthcare Dividend Dates 2021
| Summary | Interim Dividend | Final Dividend |
|---|---|---|
| Per-share | $0.36 | $0.55 |
| Ex-div date | 9 March 2021 | 7 September 2021 |
| Pay date | 24 March 2021 | 22 September 2021 |
Sonic Healthcare Dividend History Graph
Sonic Healthcare typically announces a dividend with the release of its half-year results in February and full-year results in August as seen in their financial calendar. SHL Dividends are typically paid twice a year, in March (interim dividend) and September (final dividend).
SHL has paid dividends every year since 1994. Including the 2008 GFC, and COVID-19 recessionary period. Sonic Healthcare dividends are often partially franked, this is due to a large proportion of the group's earnings being derived from the USA. They also offer a Dividend Reinvestment Plan (DRP).
Sonic Healthcare Dividend Yield Comparison
SHL current gross dividend yield is 2.84%. This is slightly below the four big banks (CBA, WBC, NAB, ANZ), and the market average of 3.24%.
The current SHL yield of 2.84% far exceeds the Average Term Deposit rate of 0.4%
The disparity in yield is why we have seen a large number of investors turn to the stock market searching for yield.
Net Sonic Healthcare Dividend Yield Over Time
We can see SHL's net dividend yield has averaged a rate of around 3-3.5%. From this, we can see SHL's current net yield of 2.33% is below its historic average.
We can see a large increase in yield and a corresponding crash caused by the COVID recession which first sent the share price down, boosting theoretical yield before impacting earnings and reducing dividends. Sonic Healthcare's dividend yield is relatively low due to the bull market following the crash.
Sonic Healthcare Dividend Payout Ratio
A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.
SHL has a progressive dividend policy that is not based on a payout ratio. The group averaged a payout ratio of 33.10% in 2021 but historically has averaged 70%.
SHL 2021 Dividend: Progressive dividend policy maintained, an increase of 4 cents (8%) to 55 cents for the FY2021 Final Dividend. FY2021 Final Dividend franked to 65% previously 30%). Total dividends for the year up 7% on the prior year.
In 2021 the group paid out a total of $415,513,000 to shareholders.
Sonic Healthcare Share Price
Sonic Healthcare Dividend Policy
Sonic healthcare has a progressive dividend policy. This means the group seeks to increase the amount paid out in dividend per share per year.
The progressive dividend policy is seen demonstrated by the dividend history below. Instead of targetting a set payout ratio, the group is targetting the growth of DPS. In the past, the payout ratio has averaged around 70%. In years that earnings fall the payout ratio may be stretched due to the progressive policy. Although earnings have been growing proportionally with dividends so far.
| As at 30 June | 2021 | 2020 | 2019 | 2018 | 2017 |
| Diluted earnings per share (cents) | 273.1 | 110.6 | 122.1 | 112.2 | 102.1 |
| Dividends paid per ordinary share (cents) | 91 | 85 | 82 | 78 | 75 |
| Dividend payout ratio | 33.1% | 76.5% | 66.4% | 69.1% | 73.0% |
When Will my Sonic Healthcare Dividends be paid?
The Group typically announces a dividend with the release of its half-year results in February and full-year results in August. Dividends are typically paid twice a year, in March (interim dividend) and September (final dividend). Payment dates are listed on the financial calendar.
Sonic Healthcare Dividend Reinvestment Plan (DRIP)
Does SHL Offer a Dividend Reinvestment Plan? SHL does currently offer a Dividend Reinvestment Plan (DRP), however, it is currently suspended.
A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend.
The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services).
- In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
- On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.
For more information check out our ASX DRIP VS NON-DRIP Guide.
