The Adairs (ASX:ADH) dividend more than doubled in FY21

A record financial result will see a generous dividend paid out to Adairs shareholders.

| More on:
A smiling woman with a handful of $100 notes, indicating strong dividend payment by Thorn Group

Image source: Getty Images

A record FY21 result has helped double the Adairs Ltd (ASX: ADH) dividend for FY21.

The company’s strong financial and operational result witnessed a 10.3% surge to $4.07 within the first hour of trade before selling pressure would see it close 1.63% higher to $3.75.

Despite a relatively weak intraday performance, investors can look forward to a generous Adairs dividend.

How did Adairs perform in FY21?

Adairs delivered a record financial performance in FY21, with highlights including:

  • Group sales rose 28.5% against the prior corresponding period (pcp) to $499.8 million
  • Group online sales increased 33.2% to $187 million, representing 37.4% of total sales
  • Group underlying earnings before interest and tax (EBIT) surging 97.3% to $109.1 million
  • Statutory net profit after tax (NPAT) lifting 80.7% to $63.7 million

However, its FY22 update and forecasts painted a cautionary tone against the record levels it achieved in FY21.

The company said that in the first 7 weeks of FY22, total group sales were down 11.7% compared to FY21. While in dollar terms, group sales for the period were lagging approximately $7 million against prior-year figures.

In addition to weaker sales so far this year, the company also expects gross margins to moderate from record FY21 levels.

Adairs dividend more than doubles in FY21

Adairs Chair Brett Chenoweth commented on the increase in shareholder returns:

Given the underlying NPAT achieved in FY21 and the strong cash generation of the business, I am pleased to advise that the Board have declared a final fully franked dividend of 10.0 cents per share. This takes the total dividend payout for the year to 23.0 cents per share.

This represents a 109% increase compared to the 11 cents per share paid out in FY20.

Adairs dividend key dates

The Adairs share price will go ex-dividend on Wednesday, 8 September and paid out on Thursday, 23 September.

Should you invest $1,000 in Adairs right now?

Before you consider Adairs, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Adairs wasn't one of them.

The online investing service he鈥檚 run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on 鈴革笍 Dividend Shares