Projected Dividend Growth for Wesfarmers Shareholders Until 2028
Shareholders of Wesfarmers Ltd have long enjoyed a history of substantial dividends. With meticulous predictions available, what might the future hold from 2024 to 2028?
Company Overview
Wesfarmers retains a portfolio of leading Australian retail brands including Bunnings, Kmart, Officeworks, and Target. Their diversified operations, spanning from chemicals and energy to healthcare, have historically driven robust profit growth and an impressive trend in share prices.
Dividend Expectations
- FY24: Following a moderate revenue and NPAT increase, the interim dividend is anticipated to rise by 3.4% to 91 cents per share.
- FY25: With projected EPS growth of 5% to $2.36, dividends are expected to rise accordingly, despite a forecasted peak in net debt.
- FY26: The Mt Holland lithium project is expected to positively influence earnings, potentially leading to a 12% jump in EPS and a 12.5% dividend increase.
- FY27: An anticipated 11.7% increase in profit could yield an 11.5% dividend hike.
- FY28: Predictions suggest a sustainable profit and dividend growth leading to a significant overall increase in shareholder returns.
Investor Insights
These forecasts, if actualized, indicate a substantial 40% growth in EPS and a 21% increase in dividends over five years. This might position Wesfarmers’ grossed-up dividend yield around 6%.
Concluding Outlook
Given these projections, investors in Wesfarmers could see a blend of stability and growth in their dividend returns, signaling a strong future performance of the company’s shares.