The JB Hi-Fi Ltd (ASX: JBH) share price is having a great day this Monday. At the time of writing, JB Hi-Fi shares are up a healthy 1.7% to $49.14 at the time of writing.
This upwards movement is a clear response to the company's FY2021 earnings report released to the markets this morning. As my Fool colleague James diligently covered earlier today, JB reported double-digit growth rates for both revenues and profits, as well as an 18.9% bump for its final dividend.
However, even after this move, JB shares have still been struggling in recent times. The company has actually gone backwards in 2021 so far, down 1.06% year to date. It's also down 0.5% over the past 12 months.
That's in contrast to the S&P/ASX 200 Index (ASX: XJO). It's up a far more pleasing 13.6% year to date and nearly 25% over the past 12 months.
Yet at the current share price, JB is seemingly offering a very attractive trailing dividend yield of 5.47% (or 7.81% with JB's full franking credits).
So what do ASX dividend experts say about this dividend yield today?
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2 experts spin the discs on the JB Hi-Fi share price
Well, a recent article in the Australian Financial Review (AFR) answers that question. The AFR takes a transcript from a recent interview conducted by Livewire Markets (before today's earnings release) with two income experts. These experts are Don Hamson from Plato and Neil Margolis from Merlon Capital.
To start things off, Mr Hamson is bullish on JB Hi-Fi. Here's some of what he said on the company:
It's a buy from us. It's a great business. [And] it's done fantastically well, solid dividend yield there. And people say it's benefited from the pandemic, but it's been one of the stocks that has done well in the online space.
Everyone thought it was going to get smashed by Amazon, but it's continued to keep on keeping on. So it's a buy from us although it's a little bit expensive, it's still a great business.
However, Mr Margolis is a little more down to earth over JB shares right now. Here's some of what he said:
A 'buy' and a 'sell'
It's a sell. [JB's new CEO is] actually a former CEO of JB Hi-Fi and he's very well-regarded. I agree Amazon was overhyped, and we said that when they arrived in 2016, but I actually think in the background, Amazon is making steady progress. They've opened a 200,000 square metre distribution centre and Apple is going live this week.
So people have become too complacent about Amazon from being too worried about Amazon. JB Hi-Fi is partly discounting its high earnings because it's not on a very high multiple, but their earnings have gone up a lot. There might be a bit of a hangover trying to clear that very high base of earnings and revenue.
So it seems both commentators view JB in a positive light, with Manson advocating a 'buy' at current levels. But Margolis thinks the current share price is a little steep compared with what JB can be expected to bring in in regards to revenues and earnings in the future.
JB Hi-Fi did add a caveat to its results this morning. The company revealed that its total sales for the first 6 weeks of FY2022 were down 14.6% compared to the same period last year. Food for thought.
At the current JB Hi-Fi share price, the company has a market capitalisation of $5.68 billion and a price-to-earnings (P/E) ratio of 12.72.
