The Coles Group Ltd (ASX: COL) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $18.46. In late morning trade on Tuesday, shares are changing hands for $18.86 apiece, up 2.17%.
For some context, the ASX 200 is up less than 0.1% at this same time.
This outperformance comes following the release of Coles' full-year financial results through to 30 June (FY 2024).
Here's what's got investors excited today.
Coles share price lifts on higher dividends
ASX 200 investors are bidding up the Coles share price following some strong financial metrics achieved in the financial year just past.
That includes a 5.7% year on year increase in revenue, which reached $43.6 billion over 52 weeks.
And underlying net profit after tax (NPAT) of $1.21 billion was up 4.1% from FY 2023.
Pleasingly for passive income investors, this saw management declare a final fully franked dividend of 32 cents per share, up 6.7% from the prior final dividend.
That brings the full-year passive income payout to 68 cents per share. At the current Coles share price, the ASX 200 stock trades on a fully franked yield (part trailing, part pending) of 3.6%.
Commenting on the company's FY 2024 performance, Coles chairman James Graham said, "This year marks 110 years since our first store opened in Smith Street, Collingwood, Victoria."
Graham added:
Ever since that time, we have been focused on providing great value, quality groceries and essentials to our customers.
Our progress over this last year reflects the continuation of this commitment: working with our team, suppliers and partners to efficiently deliver fresh food, groceries, household items and liquor across our network of more than 1,800 retail outlets, serving customers nearly 18 million times a week.
Investors may also be bidding up the Coles share price today based on the company's relatively strong outlook for FY 2025.
Indeed, the new financial year is off to a solid start, with Coles reporting 3.7% supermarket revenue growth in the first eight weeks of FY 2025.
As for the company's brick and mortar footprint, as the Motley Fool reported earlier today:
In FY25, the company plans to open eight new supermarket stores, close five, and renew approximately 50 stores. Similarly, the company aims to open 13 new liquor stores and close 10 stores.
How has the ASX 200 food retailer been performing?
The Coles share price has been a strong performer over the past 12 months, up 18%. And that's not including the dividend payouts.
