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 payments

Image source: Getty Images

You鈥檙e reading a free article with opinions that may differ from The Motley Fool鈥檚 Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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

falling healthcare asx share price Mesoblast capital raising
鈴革笍 Dividend Shares

Sonic Healthcare (ASX:SHL) dividend rises 7%, share price falls after FY21 results

Triple digit profit growth and a solid dividend was not enough to impress investors on Monday.

Read more

A businessman on a road raises his arms as dollar notes rain down on him representing the dividends that NAB will pay over the next few financial years to shareholders
鈴革笍 Dividend Shares

The Newcrest (ASX:NCM) dividend boosted 129%

Newcrest marks its sixth successive year of increasing dividend payments to shareholders

Read more

Happy couple laughing while shopping in supermarket
52-Week Highs

August has been a great month so far for the Woolworths (ASX:WOW) share price

We take a look at how shares in the supermarket giant have been performing ahead of the company's full-year results

Read more

wine glass full of coins
鈴革笍 Dividend Shares

The Treasury Wines (ASX:TWE) dividend bumped up by 60%

Here's how Treasury Wines dividends for FY21 have stacked up.

Read more

Young boy cries and covers eyes with torn money on table
鈴革笍 Dividend Shares

The Origin (ASX:ORG) dividend has dropped 20%

What's happened to Origin's dividends?

Read more

two people hold a sheet above their head while making a bed in a room featuring homewares.
Retail Shares

How did the Adairs (ASX:ADH) share price respond last earnings season?

The homewares retailer will be looking for another year like last year when it releases its FY21 earnings tomorrow.

Read more

Two men excited to win online bet
Share Market News

Why the Tabcorp (ASX:TAH) dividend was boosted by 32%

The strong performance of Tabcorp's business will see a combined FY21 dividend of 14.5 cents.

Read more

two women and a man eating pizza at a party
鈴革笍 Dividend Shares

Domino’s (ASX:DMP) dividend boosted by 45%

Consumers are clearly buying more pizzas during COVID, driving a 45% jump in Domino's dividend.

Read more