Super Retail (ASX:SUL) dividend supercharged by 450%

Super Retail just delivered record sales, doubled net profit and announced a four-fold increase in dividends.

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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.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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