The Super Retail Group Ltd (ASX: SUL) dividend is about to increase four-fold after a record FY21 performance.
A record setting year for Super Retail
According to the company, Super Retail has continued to experience "unprecedented consumer demand in [its] lifestyle and leisure categories". The successful execution of its "omni-retail" strategy, in addition to its investment in supply chain and inventory management, has translated to record results across key financial metrics.
The company achieved full-year sales of $3.45 billion, up 22% on the prior corresponding period.
This would lead to an impressive 80% surge in segment earnings before interest and tax (EBIT) to $476.8 million and a 107% jump in normalised net profit after tax (NPAT) to $306.8 million.
The outstanding performance was underpinned by strong like-for-life (LFL) sales growth across the company's major retail brands — Supercheap Auto, Rebel, BCF and Macpac.
BCF would experience a significant 48% surge in LFL growth, while the other three brands would achieve growth in the mid-to-high teens.
The Super Retail share price rallied 3.73% on open to a high of $13.62 on Wednesday, before selling pressure would see its shares close 0.84% lower at $13.02.
A triple digit surge in Super Retail dividend
The company's board determined a fully franked final dividend of 55 cents per share, lifting the company's total dividend for FY21 to 88 cents per share.
This represents a 451% increase compared to its FY20 dividend of 19.5 cents.
Super Retail said the dividend is in line with the company's dividend payout ratio of 65% of full-year underlying NPAT.
At today's prices, the final dividend alone is worth a yield of 4.18%.
Super Retail dividend dates
The Super Retail share price will go ex-dividend on Monday, 23 August and be paid out on Thursday, 10 October.
