Guess which soon-to-be-ASX 200 share doubled its dividend in August

There's still time to snap up this upcoming ASX 200 share's super-sized dividend.

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Key points

  • The Lovisa share price has lifted more than 18% since last Monday to trade at $23.48 today
  • Its gains come amid news the company has more than doubled its final dividend – and there's still time to snap up its upcoming payment
  • On top of this, it has been revealed as an ASX 200 addition. The company will be added to the index later this month.

Lovisa Holdings Ltd (ASX: LOV) has had a good run lately, culminating in news the share will be added to the S&P/ASX 200 Index (ASX: XJO) later this month.

Its inclusion in the iconic index comes after the jewellery retailer posted outwardly epic full-year earnings last month. Indeed, the company more than doubled its final dividend.  

At the time of writing, the Lovisa share price is $23.48, 2.09% higher than its previous close.

For context, the broader market is in the green. The All Ordinaries Index (ASX: XAO) is up 1.04% right now, while the ASX 200 has lifted 0.96%.

Let's take a closer look at all that's been going right for the ASX retail favourite.

This dividend-paying favourite will soon be an ASX 200 share

The Lovisa share price has been on the up and up lately after the company doubled its dividend and was flagged for inclusion in the ASX 200 index – all in just a few weeks.

The stock has gained 18.6% since it released its latest earnings last Monday.

The company's revenue lifted 59% year-on-year in financial year 2022 while its after-tax profit more than doubled to come in at nearly $60 million.

On the back of such a strong performance, Lovisa declared a 37 cent per share fully-franked final dividend.

That marked a 105.5% improvement on its previous 18 cent final dividend and brought its full-year payout to 74 cents per share – a 94.7% year-on-year increase.

It's also worth noting the company won't trade ex-dividend until Wednesday. That means market watchers have until then to snap up Lovisa shares and still receive the company's upcoming dividend.

And those holding the share will soon see their investment included in the ASX 200. The company will be added to the index prior to market open on 19 September.

Its inclusion will likely increase demand for the company's stock.

That's because funds tracking the index will be forced to snap up its securities. As per the law of supply and demand, the Lovisa share price will likely rise in turn.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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