- Dividend stocks play a crucial role in an investment portfolio as they offer regular income even during times of volatility.
- ASX is home to several dividend-paying stocks across sectors, retail being one of them.
- JB Hi-Fi, Coles, and Wesfarmers have provided a decent annual dividend yield of over 3%.
Dividends are an important indicator of a Company’s value. Growth in dividend is consistent with a Company’s earnings in the long run, and thus a dividend increase indicates that the Company is growing as well. A dividend is a distribution which the Company gives its shareholders from its earnings, as determined by the Board of Directors.
Investors receiving dividends (Copyright © 2021 Kalkine Media)
Any update on the dividend payout is generally accompanied by the change in the Company's stock price.
This article would be looking at three leading retail stocks that pay regular dividends - JB Hi-Fi, Coles Group, and Wesfarmers Limited.
DO CHECK: Top 25 ASX Stocks By Dividend Yield
JB Hi-Fi Limited (ASX:JBH)
JB Hi-Fi is an Australian retailer, primarily engaged in home consumer products. It majorly focuses on consumer electronics, software, white goods, and appliances. The Company brings together two renowned and most trustworthy retail brands in Australia, JB Hi-Fi and The Good Guys.
The Company made its ASX debut on 23 October 2003. Its shares have improved by ~2243.13% since its listing. On 19 May 2021, JBH shares were up 0.209% at AU$47.900 (at AEST 1:42 PM).
The Company has consistently provided its shareholders with dividend since 2011. The image below highlights the dividend paid by the Company since March 2019.
About recent dividend
JBH declared a dividend of 180 cents (AU$1.8) per share. The Company has an annual dividend yield of 5.57%.
The Company delivered strong growth in its top-line and bottom-line numbers in 1H FY2021. Revenue, EBIT and NPAT improved by 23.7%, 76% and 86.2%, respectively.
Record Date: 26 February 2021
Ex-Date: 25 February 2021
Payment Date: 12 March 2021
Coles Group Limited (ASX:COL)
Australian player Coles Group Limited is a retailer of products including household goods, alcohol, fuel, groceries, and financial services. The Company has more than 2,500 retail outlets nationally.
Coles Group's businesses
- Coles Supermarkets
- Coles Online
- Coles Liquor
- Coles Express
- Coles Financial Services
Coles made its ASX debut on 21 November 2018, and its shares have moved up by ~29%. On 19 May 2021, COL shares were down 1.220% at AU$16.200 (at AEST 1:42 PM).
The Company has consistently given dividend to its shareholders since September 2019.
About recent dividend
The Company recently provided a dividend following its 1H FY2021 results. The Company declared a fully franked dividend of 33 cents (AU$0.33) per share. The Company has an annual dividend yield of 3.7%.
The Company delivered a growth of 8.1% in its revenue and 14.5% in net profit compared to the previous corresponding period. The EBIT for the period was AU$1,020 million. The Company has zero debt.
Record Date: 01 March 2021
Ex-Date: 26 February 2021
Payment Date: 26 March 2021
Q3 Sales Highlights
In Q3 FY2021, the Company witnessed a drop in supermarket sales by 6.1% as Coles cycled the substantial COVID-19 impact during late February and March of the previous corresponding period. Liquor and Express sales improved by 2.6% & 7.4%, respectively.
Wesfarmers Limited (ASX:WES)
Headquartered in Australia, Wesfarmers Limited is a diversified corporation with operations into:
- Home improvement and outdoor living
- Apparel and general merchandise.
- Office supplies
- It has an industrials sector with businesses in chemicals, energy & manures, and industrial & safety goods.
The retail giant made its ASX debut on 15 November 1984, and since 1991, the shares have improved by ~2534%. On 19 May 2021, WOW shares were down 1.131% at AU$40.230 (at AEST 1:45 PM).
The Company has consistently provided dividend since 2012. The chart below shows dividend payments since April 2019.
About recent dividend
The Company recently provided a dividend of 88 cents (AU$0.88) following its 1H FY2021 results. WES has an annual dividend yield of 3.38%.
The Company delivered a strong trading performance in its retail business. Its revenue, EBIT and NPAT improved by 16.6%, 25.2% and 25.5% respectively.
Record Date: 24 February 2021
Ex-Date: 23 February 2021
Payment Date: 31 March 2021