Woolworths Group Ltd (ASX: WOW) shares are $29.24, down 0.27% while the S&P/ASX 200 Index (ASX: XJO) is down 0.37%.
It's been a tough year for Woolworths investors, who have watched the market's largest consumer staples share fall 4% this year.
Meantime, the share price of chief rival Coles Group Ltd (ASX: COL) has soared 17.8%.
As a forgettable year for Woolworths shareholders draws to a close, here are the key dates to mark in your diary for the new year.
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When will Woolworths pay dividends in 2026?
Woolworths will announce its 1H FY26 results and the interim dividend on 25 February.
The record date for the interim dividend will be 5 March.
Woolworths will pay the dividend to investors on 2 April.
The supermarket giant will release its third-quarter FY26 sales update on 30 April.
On 26 August, investors will learn of Woollies' full-year FY26 results and how much the final dividend will be.
Should you buy Woolworths shares?
Top broker Bell Potter says Woolworths shares are a buy for the new year.
Bell Potter has a 12-month price target of $30.70 on Woolworths shares.
In relation to dividends, the broker is tipping Woolworths to pay a fully franked annual dividend of 91 cents per share in FY26.
In FY27, Bell Potter forecasts an annual dividend of 100 cents per share.
Based on today's Woolworths share price, these forecasts equate to dividend yields of 3.1% in FY26 and 3.4% in FY27.
Morgans is less optimistic and has a hold rating on Woolworths.
After the company released its 1Q FY26 sales update in October, the broker noted "some early signs of modest improvement".
The broker commented:
WOW's 1Q26 sales growth overall was broadly in line with our expectations but weaker than consensus estimates.
Management acknowledged the performance fell short of their aspirations.
The quarter began with challenges, but following increased investment in the customer value proposition, management noted signs of modest improvement in item and transaction volumes in the early part of 2Q26, with sales up ~3.2%.
Looking ahead, Morgans says the Christmas period will be a critical trading period for Woolworths.
While the modest pick-up in operating performance in early 2Q26 and indications from customer surveys that cost-of-living pressures may be easing are encouraging, the group's performance during the key upcoming festive period will be critical.
The impact on margins from the increased investment will also be important to monitor.
As for dividends, Morgans says Woolworths is trading on a forward FY26 dividend yield of about 3.5%.
The broker views Woolworths as fully valued with a price target of $28.25.
This implies a potential downside of 3.5% ahead.
… we think the stock remains fully valued and prefer to wait for further evidence of improvement before reassessing our view.
