The Wesfarmers Ltd (ASX: WES) share price has slipped 9% since 13 September.
Shares in the diversified S&P/ASX 200 Index (ASX: XJO) retail company are currently trading for $44.26 each, 0.55% higher than yesterday's closing price. But the Wesfarmers share price remains down 26% in 2022.
Wesfarmers' subsidiaries include household names like Bunnings Warehouse, Kmart Australia, Officeworks, and Covalent Lithium.
And the company is well-known for its reliable dividend payments. It traditionally makes two fully-franked dividend payments to shareholders each year, generally paid out in March and October.
Despite the Wesfarmers share price taking a hit (alongside almost every stock on the ASX 200) during the early months of the pandemic in 2020, the company still made both dividend payouts.
Wesfarmers also offers a dividend reinvestment plan (DRP).
This year the company paid out 80 cents in dividends on 30 March and $1.00 on 6 October.
At the current share price, that works out to a trailing dividend yield of 4.1%.
Which brings us back to the question…
Is the retail giant now a bargain for its dividend payments?
According to analysts at Morgans, the answer looks to be a solid 'yes'.
Morgans believes Wesfarmers is well positioned to grow over the coming years, with a "highly regarded management team" and "quality retail portfolio".
Morgans has an add rating on the stock and a $55.60 target for the Wesfarmers share price.
That's 26% higher than the current share price, meaning Morgans sees potential capital gains alongside a reliable dividend stream.
As for that dividend stream, the analysts forecast dividend payouts of $1.82 in FY23, with dividends edging up to $1.89 in FY24.
That works out to fully franked yields of 4.1% in the current financial year and 4.3% the following year.
How has the Wesfarmers share price performed longer-term?
Over the past five years, the Wesfarmers share price has gained 46%. And that doesn't include the twice-yearly dividend payouts.
By comparison, the ASX 200 is up 14% over that same period.
