The Wesfarmers Ltd (ASX: WES) share price is trading lower with the market on Thursday.
In afternoon trade, the conglomerate's shares are down almost 1% to $45.09.
However, shareholders are still likely to be smiling today, despite this decline.
That's because today is payday for Wesfarmers shareholders, with the company's final dividend for FY 2022 hitting bank accounts on Thursday.
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The Wesfarmers dividend
In August, Wesfarmers released its full year results and revealed an 8.5% increase in revenue to $36.8 billion.
Things weren't quite as positive on the bottom line, though. This was due to weakness from its Kmart and Officeworks businesses, which offset strong performances from Bunnings and the WesCEF businesses.
Wesfarmers reported a 3.8% decline in EBIT to $3.6 billion and a 1.2% reduction in net profit after tax to $2.35 billion
However, despite this profit decline, the Wesfarmers board declared a $1.00 per share fully franked final dividend. This brought its full-year dividend to $1.80 per share, which was a modest 1.1% increase over the prior corresponding period.
Eligible shareholders have been paid this $1.00 per share fully franked dividend today, which represents an attractive 2.2% yield at current prices.
Are Wesfarmers' shares a buy?
One leading broker that sees a lot of value in the Wesfarmers share price is Morgans.
According to a recent note, the broker has an add rating and $55.60 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.
Pleasingly, Morgans is expecting the Wesfarmers dividend to grow again in FY 2023. It has pencilled in a fully franked dividend of $1.82 per share, which equates to a yield of 4%.
This brings the total potential return on offer with its shares to 27%.
