Wesfarmers Ltd (ASX: WES) shareholders might be feeling a bit bruised this week after the share price tumbled on the release of the company's half-year earnings.
However, there's plenty to look forward to. Namely, Wesfarmers' upcoming interim dividend.
While it might be smaller than usual, it puts the company in a decent yield position.
Let's break down what investors should know about their upcoming pay day.
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What's the deal with Wesfarmers' interim dividend?
The Wesfarmers share price tumbled yesterday, and part of its slump might have been brought on by the announcement of its interim dividend.
The conglomerate will be paying out 80 cents per share for the 6 months ended 31 December 2021. That's 9% lower than last year's interim dividend for financial year 2021.
Additionally – discounting its dividend for the first half of financial year 2020 – it represents the smallest interim dividend paid by Wesfarmers since 2013.
The lower dividend came after Wesfarmers' after-tax profits tumbled 14% over the first half.
The company's suffering was mainly brought on by the outbreak of the COVID-19 Omicron variant. It caused notable supply chain issues and staff shortages.
What are the positives?
There are positive ways of looking at the company's latest payout, though.
As usual, Wesfarmers' dividend will be fully franked – meaning, it could benefit some investors at tax time.
Also, it gives Wesfarmers a trailing dividend yield of 3.3% – taking into account this new interim dividend and the final dividend it paid for financial year 2021.
The key dates excited investors will want to look out for are as follows:
- Wesfarmers will trade ex-dividend on 22 February
It's likely the Wesfarmers share price will fall on the company's ex-dividend date.
That's because traders who buy into the company from then on won't be eligible for the payout.
The value of all ASX shares often falls in line with the value of the dividend being paid out.
- Shareholders will receive their interim dividends on 30 March
Whether Wesfarmers investors have more to look forward to when the company releases its full-year results in August is yet to be seen.
Wesfarmers still hasn't provided any guidance for financial year 2022. However, the company does expect continuing COVID-19 impacts in the second half.
