Want to cash the latest Coles dividend? Here's what you need to do

You'll need to hurry if you want Coles' next dividend payment.

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Since listing on the ASX in its own right back in late 2018, Coles Group Ltd (ASX: COL) has carved out a name for itself as a generous dividend payer. The supermarket giant has increased its annual dividend most years since 2019 without delivering a single dividend cut.

That's unlike the shares of its arch-rival Woolworths Group Ltd (ASX: WOW).

Earlier this month, Coles revealed its latest half-year earnings report, which detailed the company's next dividend payment.

Coles began by announcing a 3.7% rise in revenues to $22.22 billion over the period. As well as a 4.2% bump in underlying earnings. The company also revealed that its next interim dividend would be worth 36 cents per share, fully franked.

That dividend is flat on what the company paid out for the same period last year. Paired with Coles' final (and fully franked) dividend of 30 cents per share from September, it keeps the company's annual dividend steady at 66 cents per share.

This gives the Coles share price both a forward and trailing dividend yield of 3.91%. That's based on the company's closing share price of $16.90 yesterday.

How to secure the next Coles dividend

But if you wish to receive this next dividend from Coles, and you don't already own this company's stock, time is running out.

Coles is scheduled to trade ex-dividend for this upcoming payment on Tuesday, 5 March. That's next week, and means the last day you can buy Coles shares with the rights to this payment attached is on Monday, 4 March.

If you buy Coles shares on Tuesday onwards, you'll miss out. So expect to see a bit of a drop in the Coles share price when the markets open on Tuesday morning, reflecting this inherent loss of value.

For eligible shareholders, Coles will then finally fork out the cash on 27 March. Unless of course, you opt for the dividend reinvestment plan (DRP). If you do so by 7 March, you have the option of receiving additional Coles shares in lieu of the cash payment.

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 Coles Group. 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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