What you need to know about the WiseTech (ASX:WTC) dividend

From dividend yield to growth and payment history, here's what you need to know about the WiseTech Global Ltd (ASX:WTC) dividend.

| More on:
understanding asx share price represented by wise owl wearing glasses

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One company that has continued to bloom in the face of the COVID-19 pandemic is cargo logistics software company WiseTech Global Ltd (ASX: WTC). The WiseTech Global share price has risen by almost 80% in the last 12 months as sales have continued to grow.

Last month, WiseTech announced a 16% increase to revenue in the first half of the 2021 financial year, driven by higher user numbers as well as price increases. Pleasingly for investors, the strong result also contributed to a big lift in the interim dividend. Here's what you need to know about the WiseTech dividend.

What is the company's dividend yield?

In its recent half-year results, WiseTech declared an interim dividend of 2.7 cents per share for the six months to 31 December 2020. This was up 59% on the same period in 2019 and gives WiseTech a trailing dividend yield of around 0.15%, fully franked.

OK, so a 0.15% yield probably isn't going to send many hearts aflutter. But WiseTech is still in growth mode and is focused on investing most of its earnings back into the business. This has helped to quickly grow earnings over the last few years, which has resulted in a steady lift in the WiseTech share price, as well as its dividend.

Is the WiseTech dividend growing over time?

WiseTech only listed on the ASX in 2016, but has been a devout dividend payer since. In the chart below we can see that the company has also been fairly consistent in growing its dividend over time. This is in line with the company's dividend policy which targets a payout ratio of up to 20% of net profit after tax (NPAT).

Source: Chart compiled by author using data from WiseTech Global

A 20% payout ratio leaves the majority of earnings free to be reinvested back into the business. In fact, WiseTech reported spending $159 million on product development in FY20 compared to just $11.1 million on dividends paid to investors.

When does WiseTech pay its dividend?

The WiseTech share price will go ex-dividend on Friday 12 March 2021. The 'ex-date' is when the shares start selling without the value of their next dividend payment so an investor needs to own the shares before the ex-date to receive the dividend. The dividend will then be paid on Friday 9 April 2021.

Motley Fool contributor Regan Pearson has no position in any of the stocks mentioned. You can follow him on Twitter @Regan_Invests. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Dividend Investing

25 ASX 200 shares with ex-dividend dates next week

There are 25 ASX 200 shares scheduled to go 'ex-div' next week.

Read more »

man doing stocktake at supermarket
Dividend Investing

Guess which ASX 200 stock is predicted to pay an 8% dividend yield in 2025

It could be rewarding to own this business.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

Want big income? Buy these high-yield ASX dividend shares

Analysts think these income options are in the buy zone right now.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Analysts have put buy ratings on these ASX dividend stocks

Here's what they are saying about these dividend stocks following their results.

Read more »

An older couple driving in a convertible on a freeway.
Dividend Investing

1 ASX 200 dividend stock I'm buying for superior passive income in 2024

This ASX 200 dividend stock trades on a juicy yield and could see sizeable share price gains in 2024.

Read more »

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today
Dividend Investing

2 cheap ASX stocks that offer more than 8% dividend yields

Aussie investors have a huge range of excellent income stocks to choose from. Here's a couple trading at a decent…

Read more »

Miner holding cash which represents dividends.
Dividend Investing

Everything you need to know about the supersized Fortescue dividend

It’s boom time for Fortescue shareholders.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Dividend Investing

Analysts say these high-yield ASX dividend stocks are buys

Big yields are expected from these dividend stocks. But how big?

Read more »