When it comes to ASX dividend stocks, blue-chip business Wesfarmers Ltd (ASX: WES) is an old favourite.
At the close of the ASX on Wednesday afternoon, Wesfarmers shares had tumbled 0.87% to $74.32 a piece.
The slump means the shares are now 9% lower over the year-to-date and 18% lower over the past six months.
For context, the S&P/ASX 200 Index (ASX: XJO) is 1.33% higher over the year-to-date but 2% lower than 6 months ago.
Global volatility and concern about inflation and the rising cost of living has smashed the retail giant's shares recently. After initially climbing 9% through the first few weeks of the year, Wesfarmers shares have crashed nearly 17% since mid-February.
Some investors might be put off by the dwindling share price and company headwinds over the past couple of months, but I see it as a rare opportunity to buy the ASX dividend stock for cheap.
Here's why.
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Wesfarmers has a long track record of consistency
As a leading Australia blue-chip company and the seventh-largest company listed on the ASX, Wesfarmers is well-established and long-standing.
The company is diversified too, with retail operations in everything from home improvement to health and wellbeing and even chemicals.
Wesfarmers has demonstrated consistent and long-term net profit growth over several years. It also has a track record of delivering solid earnings regardless of how challenging the economic conditions are.
Take the latest first-half FY26 update, for example.
The Kmart and Bunnings owner posted a 9.3% increase in its NPAT, an 8.4% hike in EBIT, and its revenue climbed 3.1% on the prior period.
And while the company acknowledges that inflation and higher operating expenses could remain as headwinds going forward, it is confident that earnings growth will continue.
Markets estimate that Wesfarmers could achieve a $2.86 billion in net profit in FY26 before climbing to $3.07 billion FY27, and $3.1 billion in FY28.
Its dividend payment is reliable and consistent
Wesfarmers is well-known for its reliable and consistent passive income payment.
In February, the ASX dividend stock declared a fully franked interim dividend of $1.02 per share, up 7.4%.
And it's expected to keep climbing higher too. The board is expected to deliver an annual dividend per share of $2.13 in FY26, which translates to a dividend yield of around 2.9%.
The retail conglomerate is forecast to pay an annual dividend per share of $2.31 in FY27 and $2.56 in FY28. By FY30, it could hike as high as $3 per share, which would be a 41% increase from FY26.
