How do Endeavour's dividends stack up against its old parent Woolworths?

Does Endeavour's dividend yield best its old parent Woolworths today?

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Key points

  • Endeavour has only been on the ASX in its own right for just over a year
  • But now that the company has established itself, we can analyse its dividends
  • So how do Endeavour's dividends stack up against Woolworths?

It's not too often that the S&P/ASX 200 Index (ASX: XJO) gains a new blue chip share among its upper echelons. But that's exactly what happened last year when Woolworths Group Ltd (ASX: WOW) spun out Endeavour Group Ltd (ASX: EDV) to live ASX life on its own.

Endeavour, the company that houses the Dan Murphy's and BWS bottle shop chains, as well as a network of pubs, used to be part of Woolworths. But since June 2021, the two have parted ways.

So now that we are more than a year out from this happy divorce, it's a good time to compare these two companies and how they stack up when it comes to dividends.

So last month, when Woolworths reported its full-year earnings for FY22, investors might have been disappointed to learn that the supermarket giant would be delivering a lower final dividend for FY22 than in FY21.

Although the cut from 55 cents per share to 53 might seem small, it still represents a dividend cut of 3.64%. Together will Woolworths' last interim dividend of 39 cents per share, Woolies shares today offer a dividend yield of 2.52%

So how does this stack up against Woolworths' progeny, Endeavour?

How does Endeavour's dividend yield compare to Woolworths?

Well, soon after its ASX listing, Endeavour hit the ground running in terms of dividends. Its first dividend was the final dividend of 7.7 cents per share that investors received back in September 2021.

The company really made a splash, though, with its interim dividend this year, which came in at 12.54 cents per share.

Last month, Endeavour reported its own FY22 earnings. These included a final dividend for FY22 of 7 cents per share, a 9.1% cut on Endeavour's inaugural dividend.

These last two payments give Endeavour a dividend yield of 2.07% on current pricing.

Now Woolworths is already in an unenvious position when it comes to dividends. That's thanks to its yield vastly trailing what its arch-rival Coles Group Ltd (ASX: COL) is offering today (3.61%).

But on these numbers, at least shareholders can comfort themselves that the parent is still besting the child when it comes to raw yield.

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended COLESGROUP DEF SET. 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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