Everything you need to know about the Woolworths dividend

Woolworths investors are in line for a pay rise.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Every earnings season, it is the blue chips of the ASX that investors arguably look forward to hearing from the most. Even if an investor doesn't own one of these shares, what these companies have to say has ASX-wide implications and even provides insight into the health of the Australian economy. Woolworths Group Ltd (ASX: WOW) is one of those shares, and we heard about the company's latest numbers, including the new Woolworths dividend, this morning.

As my Fool colleague covered earlier, it was a strong set of numbers that the company had to show for itself. Woolworths reported revenue of $71.54 billion for the 12 months to 30 June, up 3.6% from the prior year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) before significant items were up an even healthier 6.7% to $6.09 billion. Meanwhile, Woolworths posted a net profit after tax (NPAT) and before significant items of $1.6 billion. That was up a pleasing 15.4%.

But let's talk about the new Woolworths dividend.

Australian dollar notes and coins in a till.

Image source: Getty Images

Everything you need to know about the next Woolworths dividend

Woolworths just revealed that its final dividend for 2026 will be worth 52 cents per share. That's a 15.56% increase over the final dividend of 45 cents per share that investors enjoyed in 2025. Like almost every dividend that this company pays, this one will come with full franking credits attached.

Together with the interim dividend of 45 cents per share (also fully franked), this final dividend takes Woolworths' 2026 payouts to 97 cents per share, up 15.48% from the 84 cents per share that investors enjoyed over 2025. This represents a payout ratio of 74.1% from the $1.309 in earnings per share (EPS) that the company made over FY 2026.

If one doesn't yet own Woolworths shares but would like to receive the latest payout, Woolworths has set 1 September as the ex-dividend date. That means investors will need to hold Woolworths shares in their names by the end of August to be eligible for the dividend.

Anyone who buys Woolworths shares on or after 1 September will leave the right to receive the payout behind with the seller. Payment day will then roll around on 25 September next month.

Woolworths is running its dividend reinvestment plan (DRP) for this latest dividend. That means investors who wish to receive additional Woolworths shares in lieu of a cash payment can nominate to do so by 3 September.

Woolworths is currently trading with a trailing dividend yield of 2.21%. However, the company can now be assigned a forward yield of 2.38%.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Piles of increasing coins on Australian $100 notes.
Dividend Investing

3 ASX shares with dividend yields of between 6% and 11%

If you're looking for income, these shares are worth a look.

Read more »

A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.
Dividend Investing

How many Qantas shares do I need to buy for $5,000 of passive income in FY27?

Suspended during the global pandemic, Qantas shares resumed paying dividends in 2025.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Where to invest $5,000 into ASX dividend shares

Looking for income options? Here are three to consider buying right now.

Read more »

Two friends giving each other a high five at the top pf a hill.
Dividend Investing

Why it could be time to shift from growth to income: Expert

The growth and income landscape is shifting in 2026.

Read more »

Stacks of Australian dollar currency banknotes.
Dividend Investing

33 ASX shares going ex-dividend next week

They include Ramelius Resources, Qantas, South32, Flight Centre, Lovisa, and A2 Milk shares.

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

2 ASX dividend shares offering 6% to 7% yields buy-rated by Morgans

Are you looking for yield opportunities ahead of capital gains tax changes on 1 July, 2027?

Read more »

Numerous Australian dollar notes laid out.
Dividend Investing

2 ASX dividend shares yielding 9.5% (or even more)

Dividend shares are an attractive option for investors who want a regular passive income.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Dividend Investing

How many Fortescue shares do I need to buy to earn $1,000 per month in passive income?

The ASX mining giant pays dividends to its shareholders every six months.

Read more »