The choppy week is coming to a bright conclusion as the Woolworths Ltd (ASX: WOW) dividend will reach the accounts of shareholders on Friday.
The Woolworths share price closed at $39.70 on Thursday, down around 5.5% since its late-August highs of $42.3.
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What happened to the Woolworths share price?
The recent weakness behind the Woolworths share price is broadly in line with the volatile S&P/ASX 200 Index (ASX: XJO).
Market moving headlines such as China's Evergrande crisis, tumbling iron ore prices, rising inflation and United States' debt ceiling has weighed on the broader market and investor sentiment.
As such, the ASX 200 has slipped 4.8% since mid-August all-time highs of 7,633.
Despite the shortcomings of the Woolworths share price, the company delivered a well-rounded FY21 performance following its successful divestment of Endeavour Group Ltd (ASX: EDV).
Its full-year results highlighted a 5.7% increase in group sales to $67.278 million, a 22.9% jump in net profit after tax to $1.972 million and a final dividend of 55 cents.
The overall Woolworths dividend for FY21 came in at 108 cents per share, up 14.9% on FY20.
Looking ahead, the company said that it experienced strong sales growth in the first eight weeks of FY22, increasing 4.5% against the prior corresponding period.
It flagged that Big W sales have been impacted by COVID-19 restrictions, and expects earnings before interest and taxes (EBIT) in the first half to be materially below 1H FY21.
Group COVID-related costs were also creeping up slightly, increasing to 0.5% of sales in the first eight weeks of FY22.
What else do investors need to know about the Woolworths dividend?
The default option for dividends is a cash payment.
But for investors that elected to participate in Woolworths' dividend reinvestment plan, the new shares will be priced at $39.63.
The new shares are expected to be issued to participants on Friday.
