The Wesfarmers Ltd (ASX: WES) share price is down 1.9% to $89.76 while the S&P/ASX 200 Index (ASX: XJO) is down 0.3% on Tuesday.
Despite this, it's an exciting day for Wesfarmers shares investors today — here's why.
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Wesfarmers shares investors are happy today!
Investors in the market's largest ASX 200 consumer discretionary share will receive their dividends today.
Wesfarmers investors will receive a fully franked final dividend of $1.11 per share.
The full-year dividend totalled $2.06 per share, which translates to a fully franked annual dividend yield of 2.3%.
Shareholders who elected to participate in the dividend reinvestment plan (DRP) will receive their new Wesfarmers shares today.
Wesfarmers announced a DRP share price of $92.5815 last week.
The company calculated its DRP share price by taking the average of the daily volume weighted average price of Wesfarmers shares, excluding trades which are not considered to reflect normal supply and demand, on each of the 15 consecutive trading days from 8 September to 26 September inclusive.
Only 12% of shareholders elected to participate in the DRP this time around.
But wait, there's more money on the way…
During earnings season last month, Wesfarmers also proposed a capital management initiative of $1.50 per share.
The initiative is comprised of a capital return of $1.10 per share plus a fully franked special dividend of 40 cents per share.
The DRP will apply to the dividend component of the distribution for shareholders who elected to participate this time around.
The diversified conglomerate is among a small collection of ASX shares paying special dividends this month.
The board decided to do a capital return following the sale of Wesfarmers' remaining interest in Coles Group Ltd (ASX: COL) and the divestment of Coregas and WesCEF's LPG and LNG distribution businesses.
The capital return is subject to a final ruling from the Australian Taxation Office (ATO) and shareholder approval at the annual general meeting on 30 October.
If approved, Wesfarmers investors can expect to receive their extra payout on 4 December.
Re-cap on FY25 results
Wesfarmers reported revenue of $45.7 billion, up 3.4%, for FY25.
Statutory earnings before interest and tax (EBIT) came in at $4.47 billion, up 11.9%.
Underlying EBIT was $4.19 billion, up 4.9%.
Operating cash flow fell 0.6% to $4.57 billion.
This all boiled down to a statutory net profit after tax (NPAT) of $2.93 billion, up 14.4%.
Underlying NPAT (which excluded certain major items) rose 3.8% to $2.65 billion.
What did management say?
Wesfarmers managing director Rob Scott said:
The group's largest divisions continued to perform well, with Bunnings and Kmart group's everyday low prices and market-leading offers driving sales and earnings growth.
Scott added:
The retail divisions also benefited from new and expanded ranges and offerings that helped grow their addressable markets.
Bunnings' solid trading performance reflects the strength and resilience of its offer and disciplined execution of its strategic agenda. Kmart Group's higher earnings were supported by its strong value credentials and focus on productivity and cost control. Officeworks increased sales and earnings, as it continues to transform its technology offer and service model.
Wesfarmers share price snapshot
The Wesfarmers share price has risen by 31% over the past 12 months.
