Reporting season is now in full swing. Certainly, there has been some impressive dividend growth revealed this week by S&P/ASX 200 Index (ASX: XJO) shares.
After such a strong period for a number of industries through the COVID-19 period, FY23 is a new phase, with high interest rates and higher costs.
But, some businesses are managing to deliver higher profits and dividends for investors. These are the increases from some of the biggest blue-chip ASX 200 shares.
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Wesfarmers Ltd (ASX: WES)
Wesfarmers is the owner of businesses like Bunnings, Kmart, and Officeworks. Each of those businesses reported an increase in earnings before tax (EBT).
As a whole, Wesfarmers reported that revenue (excluding Wesfarmers Health) saw 11.4% revenue growth, with net profit after tax (NPAT) growth of 14.1% to $1.38 billion. Earnings per share (EPS) grew by 14% to $1.22.
That profit growth enabled the ASX 200 share to grow its dividend by 10% to 88 cents per share.
It also said that retail trading results in the first five weeks of the FY23 second half were "broadly in line with growth reported for the first half".
Telstra Group Ltd (ASX: TLS)
Telstra was another business to report this week. Total income increased 6.4% to $11.6 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 11.4% to $3.9 billion, and EPS jumped 27.1% to 7.5 cents.
It continues to see growth in users in its mobile division.
The ASX 200 telco revealed a 6.3% increase in its dividend, equating to an 8.5 cents per share payment.
Telstra is benefiting from a combination of revenue increasing and cost-cutting. The telco is expecting EPS to keep growing as part of its T25 strategy, which is about increasing profit, being the 5G leader, and being a great workplace for employees.
In FY23, it's expecting to generate underlying EBITDA of between $7.8 billion to $8 billion and free cash flow after lease payments of between $2.6 billion to $3.1 billion.
Commonwealth Bank of Australia (ASX: CBA)
CBA revealed a 9% increase in cash NPAT to $5.15 billion, while pre-provision profit jumped 18% to $7.82 billion. The net interest margin (NIM) improved to 2.10%, up 23 basis points (0.23%) from the FY23 second half.
This enabled the ASX 200 share to grow the interim dividend by 20% to $2.10 per share. This represented a dividend payout ratio of 69%.
CBA noted that households are feeling "significant strain" from interest rates, though consumer spending remains "resilient". It also said that "the fundamentals of the economy remain solid, with low unemployment, strong exports and returning migration."
