Stockland increased its final dividend by a quarter but its distribution is yet to return to “COVID-normal”.
The post Stockland (ASX:SGP) unveils biggest dividend in 2 years appeared first on The Motley Fool Australia. –
Property group Stockland Corporation Ltd (ASX: SGP) announced this morning that it will boost its final dividend by a quarter compared to last year.
Stockland will pay a second half dividend of 13.3 cents a share compared to the 10.6 cents it paid in 2020.
The increase will be welcomed by shareholders, although the payout hasn’t recovered to pre-COVID levels. The commercial and residential property group paid a final distribution of 14.1 cents back in 2019.
Stockland’s dividend sitting at ~5%
Nonetheless, investors can at least look forward to the FY21 full year distribution coming in at 24.6 cents a share.
Based on Stockland’s share price of $4.80 on Tuesday, that gives the group a yield of 5.1%. That’s not a bad return given that interest rates here are still stuck at record lows – at least for the time being.
However, investors should be aware that Stockland doesn’t pay franking credits, so what you see is what you get.
Stockland share price doesn’t react to dividend news
The Stockland share price didn’t jump on the dividend news either. Its shares slipped 0.6% this morning to $4.77.
This is probably because the rebound in distributions is inline with management’s guidance and few would be surprised.
Stockland’s dividend outlook
Having said that, supporters believe that Stockland’s dividend will continue to increase in the following year as the group shakes off the impact of COVID-19.
Investors will get to test their belief when Stockland releases its full year results on 20 August. Management should have more to say about the group’s outlook then.
The Record Date for determining the distribution entitlement is 30 June 2021. The distribution payment will be made on Tuesday 31 August 2021.
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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.