The Treasury Wine Estates Ltd (ASX: TWE) share price struggled on the ASX yesterday, despite the winemaker and distributor boosting its final dividend to 13 cents per share.
Treasury Wine released its earnings for the financial year 2021 yesterday. For the 12 months ended 30 June 2021, the company brought in $250 million of net profit after tax.
Those profits saw it hand its investors a dividend representing 62.5% more than its previous financial year’s final dividend.
Unfortunately, the boosted dividend wasn’t enough to get the market excited about the formerly embattled company. The Treasury Wine share price slipped 1.5% yesterday, finishing the day trading at $12.50.
Let’s take a closer look at Treasury Wine’s dividend’s growth.
Treasury Wines dividends for FY21
A 13-cent final dividend wasn’t enough to get the Treasury Wine share price back into the green yesterday.
However, it might have some of the winemaker and distributor’s investors jumping for joy.
Taking into account the company’s 15-cent interim dividend – which it gave to its shareholders in March 2021 – Treasury Wine has paid out 28 cents worth of dividends for FY21.
How do the company’s FY21 dividends stack up?
Investors might have breathed a sigh of relief when they saw the company’s recently announced dividend.
Treasury Wine’s interim dividend for FY21 was 25% less than its interim dividend for the 2020 financial year. The company paid its shareholders a 20-cent interim dividend in FY20. However, it dropped its FY20 final dividend to just 8 cents.
That means the company’s total dividends for FY21 are in line with those of the previous comparable period.
Additionally, all of Treasury Wine’s dividends have been fully franked since 2018.
Some investors see greater value in franked dividends as they have the potential to lower a shareholder’s tax bill.