There have been many ASX dividend shares that I've been impressed with so far this earnings season. Over the past week or two, we've seen the likes of Pro Medicus Ltd (ASX: PME), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Ampol Ltd (ASX: ALD), and many more announce dividend pay rises for their investors.
Today, another income stock joined that party. It was none other than Coles Group Ltd (ASX: COL).
Coles is, of course, the famous name behind the dominant supermarket chain and Liquorland bottle shop network. As we covered earlier today, it was a decent set of numbers that the company had to show for its 2026 financial year. For the 12 months to 30 June 2026, Coles reported revenues of $45.58 billion, up 2.8% over FY2025.
Earnings before interest and tax (EBIT) rose 9.9% to $2.32 billion, while net profits after tax (NPAT) surged 13.7% to $1.26 billion.
Perhaps it is these numbers that have prompted the market to push Coles shares 2.3% higher so far this Tuesday to $23.20 each (at the time of writing). Or perhaps it was the dividend hike that Coles just announced.
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Coles: An ASX share with seven years of dividend growth
Yep, Coles has just revealed that its final dividend for 2026 will be worth 37 cents per share. It will come with full franking credits attached, as is Coles' habit. That represents a 15.6% hike over the final dividend of 32 cents per share that investors enjoyed last year.
Together with the April interim dividend of 41 cents per share, this latest payout takes Coles' full-year dividends to 78 cents per share. Again, that is a nice 13.04% rise over 2025's total of 69 cents per share.
So why would I buy Coles shares for income post-earnings? Well, a big reason is this company's dividend history. Consistent dividend growth over time is difficult to fake. Dividends are a heavy burden on a company's finances. As such, only the strongest companies tend to be able to keep their payouts growing year in, year out.
2026 happens to be the seventh year in a row that Coles has grown its annual dividends per share. Bear in mind that Coles was only listed on the ASX back in late 2018.
Given that this ASX share is a mature, healthily profitable business in a defensive sector of the market, this dividend pedigree is worth a lot. As such, I would be happy to add Coles shares to a diversified income-focused portfolio today.
