Buying Coles shares? Here's the dividend yield after the 8% price drop

Coles' dividend is back over 3%.

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Happy woman looking for groceries. as she watches the Coles share price and Woolworths share price on her phone

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Key points

  • Coles shares have dropped over 8% from their record high, contrasting the broader ASX 200's 5% decline.
  • The recent dip has enhanced Coles' dividend yield from 2.84% to a more attractive 3.09%.
  • Coles has consistently increased its annual dividends since 2019, though future payouts are never guaranteed.

The S&P/ASX 200 Index (ASX: XJO) has had a rough few weeks, capped off by today's lefty fall. As it currently stands, the ASX 200 has slid more than 5% lower since hitting its last record high back in August. One popular ASX 200 stock has fared even worse, though. So let's talk about Coles Group Ltd (ASX: COL) shares. 

Coles shares have indeed had an even rougher few weeks than the broader market. The ASX 200 supermarket and bottle-shop operator last peaked at $24.28 a share back in early September. That was a new record high at the time. 

But since then, Coles has fallen by more than 8%, arriving at the $22.30 level we see today (at the time of writing).

That record high was spurred by Coles' full-year earnings report. This, in stark contrast to its arch-rival Woolworths Group Ltd (ASX: WOW), delighted investors with healthy numbers. Including a fat, fully franked dividend

Speaking of dividends, though, one of the silver linings to this dip in the Coles share price is an increase in the dividend yield that new investors can secure if they buy at the lower price. 

So today, let's talk about just how valuable this dip has been for the Coles dividend.

How much is the Coles dividend yield right now?

Over 2025, Coles has now paid out its usual two dividend payments. The first was the interim dividend worth 37 cents per share that investors received in March. The second was the final dividend from September, worth 32 cents per share. This annual total of 69 cents per share represents a mild 1.47% increase from the 68 cents the company paid out over 2024.

When Coles shares were trading at that record high of $24.28, that annual total of 69 cents per share would have given the company a dividend yield of 2.84%. That's the lowest level seen in quite a while. However, at the lower price of $22.30 that we see today, investors have a more attractive yield of 3.09% to consider. That's certainly a silver lining to the falls in Coles shares that we've recently seen for dividend investors.  

Of course, this all assumes that Coles will at least pay out an equal amount in dividends over 2026 as it did over 2025, which is not guaranteed, nor should it be assumed. However, Coles does have a pretty good track record in this department. The ASX 200 stock has increased its annual dividend every year since 2019. Let's see if that streak extends into 2026 next year. 

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. 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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