Wesfarmers Dividend is in line with the market average. The group has returned over $2 Billion to shareholders in 2021 and expects to return more to investors in late October.
Wesfarmers Dividend Summary
Wesfarmers Dividend Dates 2021
|Summary||Interim Dividend||Final Dividend|
|Ex-div date||4 March 2021||2 September 2021|
|Pay date||1 April 2021||30 September 2021|
Wesfarmers Dividend History Graph
WES 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. WES Dividends are typically paid twice a year, in April (interim dividend) and September/October (final dividend).
WES has paid dividends every year since 1985. Including the 2008 GFC, and COVID-19 recessionary period. We also saw the group pay a special dividend in 2019 and 2020. Wesfarmers pays dividends that are fully franked. They also offer a Dividend Reinvestment Plan (DRP).
Wesfarmers Dividend Yield Comparison
The current CSL yield of 4.62% 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 Wesfarmers Dividend Yields Over Time
We can see WES's net dividend yield has averaged a rate of around 4%. From this, we can see WES's current net yield of 3.24% is slightly below its historic average.
We can see the yield spike from 2019-2020, this is related to a large dividend payment in 2019 due to a special dividend, and then the initial price crash in 2020 relating to the COVID recession.
Wesfarmers 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.
The total dividends paid out by WES in 2021 were 178 cents per share. In addition to the final ordinary dividend, the directors are recommending a return of capital of 200 cents per share, representing a $2,268 million distribution. The exact details of the methods of this capital return are yet to be realized, but a special dividend or share buy-back is likely.
$2.1 Billion was returned to shareholders in 2021 by Wesfarmers. In comparison $900 million was reinvested into the business.
Wesfarmers Share Price
Wesfarmers Dividend Policy
What is Wesfarmers Target Dividend Payout Ratio: 80-90%
Wesfarmers dividend policy is set to regard current earnings and cash flows, available franking credits, future cash flow requirements, and targeted credit metrics. Wesfarmers expects to distribute 80 to 90 percent of underlying profit to its shareholders while retaining strategic flexibility.
When Will my Wesfarmers 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/March (interim dividend) and September/October (final dividend). Payment dates are listed on the financial calendar.
Wesfarmers Dividend Reinvestment Plan (DRIP)
Does WES Offer a Dividend Reinvestment Plan? WES does currently offer a Dividend Reinvestment Plan (DRP).
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.
- 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.