BlueScope announces a special dividend following record FY21 earnings.
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At the time of writing, the BlueScope share price is 0.59% higher to $25.64.
How did BlueScope perform in FY21?
BlueScope delivered triple-digit increases across key financial metrics, underpinned by surging steel prices and strong demand from residential and non-residential construction segments.
BlueScope reported a 207% increase in underlying earnings before interest and taxes (EBIT) to $1.72 billion and a 1,222% surge in reported net profit after tax (NPAT) to $1.19 billion.
The company expects these strong conditions to continue, citing “at the beginning of 1H FY2022, order and dispatch rates in key markets remain robust”.
In addition, “spot steel spreads in North America are materially higher than both 2H FY2021 and longer-term averages”.
Taking into consideration the strong pricing environment, the company expects underlying EBIT in 1H FY2022 to be in the range of $1.8 billion to $2.0 billion.
This would represent a 239% to 276% increase against 1H FY2021 figures.
BlueScope dividend boost
BlueScope announced a final dividend of 25 cents per share plus a special dividend of 19 cents per share.
This brings BlueScope’s FY21 dividend to 50 cents, a dividend yield of 1.9% at today’s prices.
According to the company’s full-year results, the Board’s intention is to increase the annual dividend level and will target 50 cents per annum.
In addition, BlueScope will continue to use on-market share buy-backs to supplement the payment of consistent dividends.
The company described buy-backs as “attractive given the flexibility they provide in managing BlueScope’s capital and for the EPS enhancement they can deliver”.
BlueScope intends to buy back up to $500 million of shares over the next twelve months.
BlueScope share price snapshot
The BlueScope share price has greatly outperformed the S&P/ASX 200 Index (ASX: XJO) in 2021, rallying 47.07% year-to-date and doubling in the last 12-months.
Alongside the capital gains, investors can expect the company’s shares to go ex-dividend on 7 September. The BlueScope dividend will be paid out on 13 October.
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Motley Fool contributor Kerry Sun 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 Bruce Jackson.