SUL Dividend Report

Super Retail Group has a solid history of growing its strong dividend. Their current yield of 10.33% has been very attractive for investors in the low-rate environment. But is this sustainable for SUL? SUL Dividend Report.

SUL Dividend Snapshot

SUL Dividend Dates 2021

SUL Dividend History Graph

SUL 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. SUL Dividends are typically paid twice a year, in April (interim dividend) and October (final dividend).

SUL has paid a dividend every year since 2005. Including 2020 during the COVID-19 recessionary period. In 2020 we did see them pay only an Interim dividend. All dividends have been fully franked. They also offer a Dividend Reinvestment Plan (DRP).

SUL Yield Comparison

SUL’s current gross dividend yield is 10.33%. This is well above the market average.

The current SUL yield of 10.33% far exceeds the Average Term Deposit rate of 0.4%

Net SUL Dividend Yields Over Time

We can see SUL’s net dividend yield has been relatively stable, excluding 2020 where we saw the yield spike as the share price dropped, the yield then reduced as dividends were cut. Super Retail Group’s net yield has averaged 5%. From this, we can SUL’s current net yield of 7.2% is well above its historic average.

SUL 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.

Based on current averages SUL’s payout ratio is 66%, which we expect to decrease in the coming years to a ratio of 63%.

In FY21 we saw SUL pay out an interim and final dividend totalling 88 cents per share. Both were fully franked and repsented a pay-out ratio of 65%.

The dividend totalled a cash payment of $124.2 million.

Robust cashflow generation supporting fully franked final dividend of 55 cents per share, bringing the full year dividend to 88 cents per share

SUL Dividend Franking Credits

Super Retail Group has a strong franking balance of $231.2 Million, the group is well equipped to continue paying fully franked dividends. The payment of FY21 dividends resulted in the use of $53.2 Million in franking credits.

SUL Share Price

SUL Dividend Policy

SUL targets a payout ratio of 65%. Although SUL has not publicized their dividend policy. Their historic payout ratio is as follows:

From these results the groups seems to be targetting a payout ratio of 65%.

When will my SUL 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 April (interim dividend) and October (final dividend).  Payment dates are listed on the financial calendar. 

SUL Dividend Reinvestment Plan (DRIP)

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

SUL Dividend History