Insights

2 ASX dividend shares that just grew their dividend by more than 10%

Propel is one of the ASX dividend shares that just implemented a large dividend increase.
The post 2 ASX dividend shares that just grew their dividend by more than 10% appeared first on The Motley Fool Australia. –

Some ASX dividend shares are implementing large dividend increases for shareholders in this reporting season.

It has been a strange time ever since the onset of the COVID-19 pandemic. Some businesses have been disrupted. Others have seen a boom in demand.

The following two businesses just implemented large dividend increases for their shareholders in the FY21 result:

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral operator across Australia and New Zealand. Despite all of the disruptions caused by COVID-19, Propel performed 13,916 funerals in FY21 – an increase of 4.6%. Death volumes were below historical long-term trends.

The average revenue per funeral in FY21 was up 4.3% to $5,917.

Those two growth numbers combined helped operating earnings before interest, tax, depreciation and amortisation (EBITDA) grow 11.9% to $36.3 million, with the EBITDA margin increasing 90 basis points to 30.1%.

Operating net profit after tax (NPAT) went up 7.6% to $15.3 million, whilst operating earnings per share (EPS) climbed 6.7% to 15.3 cents.

The Propel board decided to pay a final dividend of 5.75 cents per share. That brought the annual dividend for FY21 to 11.75 cents per share, an increase of 17.5%.

During the year, the ASX dividend share spent $29.6 million on acquisitions in New Zealand, Western Australia, New South Wales and Queensland.

In FY22, it’s expecting to benefit from death volumes reverting to long-term trends, acquisitions and a “strong” funding position. It also pointed to the growing and ageing populations in Australia and New Zealand as long-term tailwinds.

In July 2021, it performed a record number of funerals, with total and comparable funeral volumes materially higher than July 2020.

Propel’s FY21 dividend translates to a grossed-up dividend yield of 4.6%.

Ansell Limited (ASX: ANN)

Ansell is another ASX dividend share that has grown its FY21 dividend substantially.

Indeed, it has grown its annual dividend by 53.6% to US 76.8 cents. That was after the board decided to pay a final dividend of 43.6 cents.

This came after a large increase in profit. Sales increased 25.6% to US$2 billion, whilst net profit grew 57.5% to US$246.7 million. EPS increased by 59.9% to US 192.2 cents. That means the dividend payout ratio is only 40%, allowing the business to re-invest for more growth.

Ansell has invested during FY21. It was focused on bringing its major capacity expansions into production despite the challenging operation environment. It was able to get 12 new glove lines and several new body protection lines live which helped it deliver the profit growth it reported.

However, in some areas of the business, it’s expecting lower demand in FY22 in areas that benefited the most during the onset of COVID-19, such as chemical body protection and exam/single use gloves.

Also, a number of Ansell’s factories and suppliers in the region have had short-term closures or reduced operations, which could impact sales in the first half of FY22. It continues to experience increased freight costs and shipping delays.

The post 2 ASX dividend shares that just grew their dividend by more than 10% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ansell right now?

Before you consider Ansell, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ansell wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Propel Funeral Partners (ASX:PFP) share price lifts 5% on FY21 performance
The ASX reporting wrap-up: Ansell, Kogan, Nanosonics

ASX 200 rises, Kogan sinks, Ansell slumps

Ansell (ASX:ANN) share price plunges 10% despite dividend boost
Why Ansell, Kogan, Monadelphous, & NIB shares are tumbling lower

Motley Fool contributor Tristan Harrison 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 recommended Ansell Ltd. and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!