Keen to bank the Cochlear (ASX:COH) dividend? Here's what you need to know

With Cochlear's financial performance hitting the mark, investors are banking on the dividend.

Key points
  • Cochlear shares have rocketed 22% on the back of the company's half-year results
  • The board declared an unfranked interim dividend of $1.55 per share
  • Eligible shareholders can pencil the date for dividend payment on 21 April

The Cochlear Limited (ASX: COH) share price has been a standout performer since the company released its first-half results in February.

The hearing solutions company's shares surged to a year-to-date high of $231.97 in early March. This represents a 22% increase from the $190.25 recorded on the day prior to the company delivering its financial results.

At Thursday's market close, Cochlear shares finished 0.80% lower to $221.53.

Below we take a look at how the company performed in H1 FY22 and the interim dividend declared for investors.

A young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.

Image source: Getty Images

H1 FY22 performance sends the Cochlear dividend higher

In the half-year report for the 2022 financial year, Cochlear reported double-digit growth across key metrics.

In summary, sales revenue increased by 10% to $815.3 million over the previous corresponding period. This was predominantly underpinned by Cochlear implants (units), up 7% to 18,598 units. Services came next in line, up 19% to $256.5 million for the six months ending 31 December.

Following the above result, underlying net profit after tax (NPAT) soared 26% to $157.5 million.

In addition, underlying earnings per share (EPS) also improved to $2.40 per share, up 26% from $1.90 in H1 FY21.

Based on Cochlear's performance, the board declared an unfranked interim dividend of $1.55 per share. This reflects a 35% lift from the $1.15 declared in the prior comparable period.

The payout ratio is 65% of the company's underlying net profit.

When can Cochlear shareholders expect payment?

Cochlear will pay the interim dividend to eligible shareholders next month on 21 April.

However, to be eligible you'll need to own Cochlear shares before the ex-dividend date which falls on Monday 28 March. This means if you want to secure the dividend, you will need to purchase Cochlear shares by today at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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