JB Hi-Fi Limited (ASX: JBH) shares have retreated 4.5% today to be trading at $17.17 after the stock went ex-dividend.
On Monday last week, Australia's leading electronics retailer announced a fully franked 59 cent per share interim dividend, which represented a 7.3% increase on its 55 cent dividend paid to investors for the same period last year. The record date determining the entitlement of the shares will be on Friday, 13 February, while the dividend will be paid to investors on 27 February.
Now could be a great time to buy into the stock for the long term. As highlighted by the latest Westpac-Melbourne Institute index of consumer sentiment, confidence is back on the rise (up 8%) – buoyed by cheaper petrol prices and the RBA's latest interest rate cut – indicating stronger sales for retailers such as JB Hi-Fi or Harvey Norman Holdings Ltd (ASX: HVN).
At $17.17, the stock is trading on an expected fully franked yield of 5%, or 7.2% when grossed up.
