Coles (ASX:COL) shares will trade ex-dividend this week. Here's what you need to know

Coles shares trade ex-div this week. Here's what you need to know.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 28, 2022 4:16 pm AEDT

We've all but wrapped up the S&P/ASX 200 Index's (ASX: XJO) earnings season for the first half of 2022. While there has been the usual slew of delights and disappointments, attention is now turning to the bevvy of dividends that ASX 200 investors are set to receive over the next few weeks as a result of these earnings. One of those ASX 200 shares that is set to trade ex-dividend for its upcoming interim payment is the supermarket and grocery giant Coles Group Ltd (ASX: COL).

So today, let's take a look at what is in store for Coles shareholders.

It was only last Tuesday that Coles revealed its half-year earnings, and in the process, the interim dividend it is set to treat shareholders with. The company's earnings themselves were a bit of a mixed bad. Coles reported higher revenues, but also a hit to earnings and profits as costs rose over the half.

shopping trolley filled with coins representing asx retail share price.ce — Image source: Getty Images

Coles to keep interim dividend steady

But we're here for the dividend, so let's get that out of the way. Coles announced that it will be paying an interim dividend worth 33 cents per share, fully franked. If an investor is desperate to see this payment hit their bank account, they will need to own Coels shares before the ex-dividend date of 3 March (Thursday this week). The dividend will then be paid out on 31 March.

This 33 cents per share payout is flat with last year's interim dividend. However, it is a slight increase from the company's last final dividend of 28 cents per share that investors received last September. It's also still up from Coles' 2020 interim dividend of 30 cents per share.

If there are any Coles investors disappointed that the company did not give investors a dividend pay rise this year (it's first steady dividend since it was spun out of Wesfarmers Ltd (ASX: WES) back in 2018), then consider this. Rival Woolworths Group Ltd (ASX: WOW) just announced an interim dividend that was 26.4% lower than its previous one. In saying that, Woolies did spin out Endeavour Group Ltd (ASX: EDV) last year, which has resulted in a smaller pool of earnings from which to fund dividend payments.

At the current Coels share price, this ASX 200 share has a market capitalisation of $23.17 billion, with a dividend yield of 3.52%.

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