The Myer Holdings Ltd (ASX: MYR) share price rocketed following the release of its half year results on 10 March.
While the company reported strong growth, investors appeared excited about the reinstated dividend. This is the first dividend that has been declared since the final FY17 dividend.
As such, Myer shares surged 24.39% on the day, touching a 3-month high of 53 cents. However, since then, the company's shares have slightly retraced to close at 51 cents on Friday.
Below we take a look at the company's financial performance and its interim dividend for investors.
Myer restarts dividend after robust H1 FY22 performance
In the half year report for the 2022 financial year, Myer recorded increases across key metrics.
In summary, sales increased by 8.5% to $1,517.4 million over the previous corresponding period. This was predominately underpinned by a combination of its online platform and store network despite COVID-19 disruptions.
Following the above result, underlying net profit after tax (NPAT) lifted by 55.2% to $32.3 million.
The group advised that momentum is being built as it moves into the second half of FY22.
In the first five weeks, Myer department store sales are up 15.2%, with stores up 9.3%, and online up 48.6%.
Based on Myer's performance, the board declared a fully franked interim dividend of 1.5 cents per share. This represents a dividend yield of 3.7% based on the closing share price on 9 March (before the results).
When can Myer shareholders expect payment?
Myer will pay the interim dividend to eligible shareholders on 12 May.
While this is some time away, to be eligible you'll need to own Myer shares before Wednesday 23 March. This is when its shares will trade ex-dividend, meaning anyone who purchases on this date or after, won't be eligible.
It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.
