Among popular Australian stocks, Woolworths Group Ltd. (AU:WOW) currently offers a dividend yield of 3.36%, above the sector average of 2.12%. In the last 12 months, the company has distributed two dividends, both of which were higher on a year-over-year basis.
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Woolworths Group is a leading grocery chain in Australia and New Zealand, owning renowned brands like Woolworths, Big W, and Countdown.
Let’s take a look at more details.
WOW Dividend History
Recently, Woolworths paid an interim dividend of 47 cents per share for FY24 in April. This marked a growth of 2.2% over the interim payment for FY23. Before that, investors received the final dividend of 58 cents per share for FY23, paid in September 2023, up from 53 cents a year ago.
The company’s share price has declined 20% over the past 12 months. This significant decline presents an opportunity for income-oriented investors to purchase additional shares at these discounted prices, given the stable dividends.
Woolworths’ Q3 Update
Last week, Woolworths reported mixed numbers in its Q3 update, warning investors of tough trading conditions. Despite this, the company reported a 2.8% increase in its third-quarter sales to AU$16.8 billion. The company’s food business, which is the main revenue contributor, was hit by a decrease in inflation and a decline in consumer spending since Christmas.
Is Woolworths Stock a Buy?
In terms of share price growth, analysts have rated WOW stock a Hold based on three Buys, three Holds, and three Sell recommendations. The Woolworths share price forecast is AU$35.13, representing a 14% increase from the current price level.
