Here's how much dividend income $10,000 worth of Coles shares will get you today

How much can investors expect in dividend income from Coles shares today?

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published November 16, 2022 1:09 pm AEDT

Since the Coles Group Ltd (ASX: COL) share price first listed on the ASX back in late 2018, the company has quickly built up a reputation for strong and consistent dividend income. Coles has paid out two dividends per year since finding its own two feet on the ASX.

What's more, the company has managed to increase its annual dividends every year since 2019. That includes during the COVID-disrupted year of 2020, not something arch-rival Woolworths Group Ltd (ASX: WOW) can say.

And yet the Coles share price hasn't quite been so kind. Today (at the time of writing), Coles is sitting at $16.55 a share. This puts the supermarket operator at a year-to-date loss of 7.5%. Coles has lost close to 15% of its value since mid-August alone when the company hit a new record high of $19.65.

Saying that, the company still remains well above the approximate $1.50 levels it floated at back in 2018. Investors are still up a healthy 29% or so since Coles was spun out of Wesfarmers Ltd (ASX: WES) back then.

But we can conclude that the only meaningful returns Coles shares have enjoyed over the past two or so years, at least on today's pricing, have come from dividends.

So how much dividend income are investors enjoying from their Coles shares?

shopping trolley filled with coins representing asx retail share price.ce — Image source: Getty Images

How much dividend income would $10,000 worth of Coles shares yield?

Well, let's say an investor has $10,000 worth of Coles shares right now. That would give the said investor 604 shares at today's pricing, with a little change left over.

So Coles has dutifully doled out its two dividends already in 2022. The first was the interim payment of 33 cents per share that was received on 31 March. Those 604 shares would have yielded a cash payment of $199.32 for that dividend.

The second was the final dividend of 30 cents per share that investors enjoyed on 28 September. That would have yielded a payment of $181.20. So together, our investor would have been paid a total of $380.52 in 2022 for their $10,000 worth of Coles shares.

That's a yield worth 3.81% on the current Coles share price. Since Coles' dividends came fully franked as well, that yield grosses up to 5.44% with the value of those franking credits included.

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