Harvey Norman Holdings Ltd (ASX: HVN) shares will pay a 20% higher interim dividend this year.
The ASX 200 electronics and home furnishings retailer will pay 12 cents per share, fully franked, to shareholders on 1 May.
If you want to share in the spoils, the window of opportunity is closing.
Harvey Norman shares will go ex-dividend on Wednesday.
This means you need to own the ASX stock by tomorrow's market close to be eligible for the dividend payment.
Harvey Norman shares to pay 20% higher interim dividend
In its 1H FY25 results, Harvey Norman revealed a 6.6% year-over-year increase in revenue to $2.29 billion.
This contributed to a 22.9% lift in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $581 million.
The retailer also reported a 41.2% increase in reported profit before tax (PBT) to $400 million.
Underlying PBT lifted 2.2% to $311 million.
Commenting on the results, Chair Gerry Harvey said:
We have made significant strides in enhancing our digital, online, and in-store experiences, alongside the strategic expansion of our global store network and targeted investments in key segments.
Investors in Harvey Norman shares do not just own a piece of an iconic retailer.
They also own a slice of a significant property portfolio.
Harvey Norman revealed that its total assets are now worth $8.25 billion, including $4.39 billion worth of freehold real estate.
The company said its net assets lifted 4.7% during the half to $4.72 billion.
Net assets have been growing at a five-year compound annual growth rate (CAGR) of 7.5%.
What's next?
Harvey Norman expects the rising use of artificial intelligence to be a tailwind for its electronics division as people upgrade their devices.
Harvey commented:
The continuing innovation and mainstream adoption of Next Gen-AI PCs and devices are expected to drive further sales growth in the Home Appliances, Television, Audio, Mobile & Computer Technology categories through FY 2025 and beyond.
Is this ASX 200 retail stock a buy?
The Harvey Norman share price has fallen 1.2% over the past 12 months but has risen 8.1% in the year to date.
This compares to a 1% lift in the ASX 200 over the past 12 months and a 2.7% decline in the year to date.
The consensus rating among analysts on the CommSec trading platform is a moderate buy.
Of the 14 analysts rating Harvey Norman shares, six say the retailer is a strong buy, and one says it's a moderate buy.
Three say hold, two say the stock is a moderate sell, and two say it's a strong sell.
Goldman Sachs has a sell rating on Harvey Norman with a 12-month share price target of $4.30.
The broker said Harvey Norman's 1H FY25 earnings were stronger than expected.
However, it's concerned about the outlook.
Goldman said:
… we remain of the view that rising competition and a lagging presence in omni-channel as well as an older demographic skew may result in lagging growth in sales vs key industry peers.
