It's a huge day for earnings on the ASX this Thursday. This session has seen a bevy of ASX 200 shares deliver their latest numbers to investors. We've heard from Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES) and Transurban Group (ASX: TCL). But I want to talk about Medibank Private Ltd (ASX: MPL) and the new dividend that was just revealed.
Yep, just like Telstra and Wesfarmers, Medibank reported its latest earnings to the markets this morning. As we covered, it was a mixed set of numbers that the ASX 200 private health insurance stock came up with.
Medibank reported a 5.5% rise in group revenues to $4.5 billion. Group operating profit increased 6% to $381.7 million, although underlying net profit after tax (NPAT) was effectively unchanged at $297.8 million.
Investors don't seem to be impressed, to be frank, with the Medibank Private share price, which is currently down a nasty 6.16% at $4.50 a share. Saying that, the company is essentially now back to where it was on Tuesday, before yesterday's near-6% share price spike. This spike came after news that the government will allow private health insurers to hike premiums by at least 4.41% from April. That's the largest premium increase Australians have seen in many years.
But let's dig into Medibank's new dividend announcement today.
Image source: Getty Images
Medibank shares slip despite dividend hike
In some pleasing news for income investors, Medibank has just revealed that it will hike its next dividend. The company revealed an interim dividend of 8.3 cents per share as its first payout of 2026. Like most dividends from Medibank Private, it will come with full franking credits attached.
This interim dividend represents a 6.4% increase over the 7.8 cents per share payout that Medibank doled out this time last year. Together with the final dividend of 10.2 cents per share from October last year, it takes Medibank's 12-month dividend total to 18.5 cents per share, a record high for the company.
It is a significant payout on another level for Medibank. This latest dividend is the sixth consecutive payout in a row that has been increased annually. That's quite a streak that Medibank is cultivating.
Medibank shares will trade ex-dividend for this payout on 26 February next week. Payday has then been scheduled for 18 March next month. Medibank is not running a dividend reinvestment plan for this dividend, so investors will have to take it in cash.
As it stands today, Medibank Private shares are trading on a trailing dividend yield of 4%. However, with this new payout revealed, we can give the stock a forward dividend yield of 4.11%.
