The Coles Group Ltd (ASX: COL) share price has soared 7% this past month.
Shares in the supermarket giant started the month of July at around $16.75. At the time of writing, the Coles share price has continued its strong run, trading at around $17.95 today.
Let's take a look at what's been fueling Coles' good performance this past month.
Lockdowns could be fueling the Coles share price
It seems the share price could be benefiting from increased consumer demand given the ongoing COVID-19 induced lockdowns.
With a majority of the Australian population experiencing some form of lockdown in the past month, essential businesses like Coles stood to benefit.
In its half-year report released earlier this year, the supermarket giant noted increased demand for in-home consumption had driven growth.
For the half-year, Coles reported an 8% increase in revenue to $20,569 million. This comprised supermarket sales of $17,800 million, liquor sales of $1,946 million and express sales of $632 million.
Coles provides attractive dividends
One of the most attractive aspects of owning Coles shares is their dividend.
Following its demerger from conglomerate Wesfarmers Ltd (ASX: WES) in 2018, Coles has been committed to providing shareholders with a high dividend payout ratio.
In 2020, the group paid an interim dividend of 30 cents per share. This was jacked up to 33 cents when Coles declared its interim dividend for 2021.
Outlook for the Coles share price
Recently, analysts from noted broker Goldman Sachs provided a positive outlook on the Coles share price.
According to analysts, Coles offers solid long term growth prospects, a generous dividend policy, and defensive qualities.
Analysts slapped a buy rating on the supermarket giant, with a price target of $20.70 on its shares.
As a result, many investors will be tuning in this reporting season to see how the supermarket giant performed in the past financial year.
Coles is slated to report its earnings for FY2021 on Wednesday 18 August.
