ASX earnings season checked another big ASX stock off this Wednesday with the release of the latest numbers from Woolworths Group Ltd (ASX: WOW). Following Coles Group Ltd (ASX: COL)'s earnings just yesterday, Woolies has just dropped its report card for the 2024 financial year. And investors like what they've seen.
As we covered this morning, Woolworths revealed that its normalised sales over the 12 months to 30 June 2024 rose by 3.7% to $67.92 billion. Normalised earnings before interest and tax (EBIT) were up 3.4% to $3.22 billion. However, net profits after tax before significant items fell 3% to $1.71 billion.
Saying that, Woolworths' reported net profit after tax (NPAT) crashed 93.3% to just $108 million. That was thanks to some balance sheet impairments and a paper loss related to the company's stake in Endeavour Group (ASX: EDV).
Even so, investors seem to approve of everything announced today. That's going off how the Woolworths share price is currently enjoying a 2.2% boost to $36.24 (at the time of writing).
But let's talk about Woolworths' dividends.
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Everything you need to know about the latest Woolworths dividends
To kick things off, Woolies revealed a final dividend of 57 cents per share for the 2024 financial year. As is typical for the grocer, that payment will come fully franked. This dividend is down 1.7% from the 58 cents per share the company paid out this time last year. It brings Woolies' dividend total for 2024 to $1.04 per share, paired with the April interim dividend of 47 cents. This matches 2023's total payouts.
However, Woolworths also revealed that investors would be treated to a special dividend in addition to this latest final dividend. Shareholders will receive a special dividend worth another 40 cents per share, also fully franked. This payout is being funded by a $489 million sale of Endeavour stock, Woolworths' remaining 5% stake in the company.
Woolworths has scheduled next Tuesday, 3 September, as the ex-dividend date for both of these payouts. So Monday, 2 September, will be the last day that investors can buy Woolworths shares with the rights to these dividends attached.
Woolworths' optional dividend reinvestment plan (DRP) will be in operation for both payments. Investors who wish to receive additional Woolworths shares in lieu of the traditional cash payment can opt to do so by next Thursday, 5 September.
Payday for eligible investors will then roll around on 30 September.
At the current Woolworths share price, this ASX 200 blue chip stock is trading on a dividend yield of 2.9%. If we include the special dividend, those shares would have a forward yield of 3.97%.
