Own Domino's shares? Today is pay day!

Eligible Domino's shareholders can expect some welcome passive income today.

If you own Domino's Pizza Enterprises Ltd (ASX: DMP) shares you've got two things to celebrate as I pen this.

First, shares in the S&P/ASX 200 Index (ASX: XJO) fast food pizza retailer are in the green during the Wednesday lunch hour. Shares are up 0.1%, trading for $42.83 apiece.

Second, today is the day the company pays its interim dividend.

Domino's shares traded ex-dividend on 26 February. Meaning you'll have had to own the stock at market close on Friday, 23 February to bank today's passive income payout.

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza

Image source: Getty Images

Domino's shares are paying out today

Domino's reported its half-year results on 21 February.

On the plus side of the ledger, the company reported same-store sales growth of 1.3% over the six months. And network sales increased 8.8% year on year to $2.14 billion.

However, with net profit after tax declining by 13% to $62 million, management reduced the interim dividend by 18.4% from the prior year, declaring an unfranked interim dividend of 55.5 cents per share.

Commenting on the company's performance on the day, Domino's CEO Don Meij said, "Today's results show we are rebuilding, and the sales initiatives we have applied in Australia/New Zealand are getting traction in some of our international markets."

ASX 200 investors appeared pleased with the company's growth outlook and strong start to the new half. Domino's shares closed up 2.3% on the day.

As for that passive income, management said the interim dividend will be subject to Domino's Dividend Reinvestment Plan (DRP). And it will be fully underwritten.

Atop the interim dividend, Domino's also paid out a final dividend of 42.6 cents per share on 28 September.

That brings the full-year dividend payout to 98.1 cents per share.

At the current share price, this sees Domino's trading on an unfranked trailing yield of 2.3%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. 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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