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Date : 04/03/2023

Coles Group (ASX: COL) shares Drop as it trades Ex-Dividend for its upcoming FY23 Interim Dividend

Coles Group Ltd (ASX: COL) is an Australian retail company that operates in the grocery, liquor, and convenience sectors. The company was founded in 1914 and is headquartered in Melbourne, Australia.

Coles Group operates over 2,500 retail outlets across Australia, including Coles supermarkets, Coles Express convenience stores, Liquorland, First Choice Liquor, and Vintage Cellars liquor stores. The company employs more than 120,000 people across its operations.

In addition to its retail operations, Coles Group Ltd also operates an online shopping platform where customers can purchase groceries and other items for home delivery or pickup at a nearby store. The company also offers financial services, including credit cards, personal loans, and insurance.

Coles shares drop and plunge as it trades ex-dividend this morning for its upcoming FY23 interim dividend.

Coles Group: 1H23 Highlights

ASX COL shares are trading at $17.41 and have a market cap of 23.33 Billion AUD.

ASX-COL share price buy

Here is the latest news on Coles Group:

  1. Coles boosted its first-half fiscal year-23 (H23) sales revenue by 3.9%, to $20.8 billion, from its continuing operations.
  2. Net profit after tax for the year’s first half was $643 million, up 17.1% over the previous year’s first half.
  3. With a $1 billion EBIT from ongoing operations, the company has seen a 9.9% increase over the previous year.
  4. The company’s basic earnings per share (EPS) from continuing operations increased to 48.3 cents, a 17.2% increase over the previous year.
  5. The interim dividend declared by the firm was announced as 36 cents per share, an increase of 9.1%.

The Reason Why Coles Shares Declined

The Coles share price declined today; if we look at the graph, COL shares declined in the previous month. But Coles ASX investors shouldn’t worry as the reason isn’t terrifying. There has been a good update and a broker downgrade. Therefore today’s drop in the Coles share price isn’t related to that. Instead, the company’s stock is trading ex-dividend for its upcoming interim dividend this morning.

If a stock is trading ex-dividend, it indicates that the buyer does not acquire the seller’s entitlement to the dividend payment. For this reason, it is common for COL shares to fall in tandem with the dividend payment.

Coles Dividend History

The results of the first half of the fiscal year 2023 for Coles were revealed a month ago. The company stated that revenues from continuing operations increased by 3.9% to $20.8 billion. The firm increased its net profit after taxes by 17.1% to $643 million, attributable to higher margins brought about by the advantages of Smarter Selling and reduced expenses associated with COVID.

This finally made it possible for the Coles board to announce a fully franked interim dividend of 36 cents per share, an increase of 9.1%, compared to the last year’s similar period dividend payout.

Today marks the ex-dividend date for Coles shares, so qualified owners may anticipate receiving their portion of their Coles Group dividends in their bank accounts on March 30.

Coles Shares Surged in February

Investors were happy with the 1H23 results, and Coles shares remained green during February. Investors also likely value Coles Group Ltd because of its reputation as a safe haven during increasing prices, interest rates, and economic uncertainty.

Many shareholders see Coles Group Ltd as a safe haven for their money. As the pandemic of 2020 and 2021 demonstrated, the company’s core business of supplying food, beverages, home items, and other necessities is very inelastic, and it can thus withstand most economic situations. That type of investor goodwill is too important to ignore.

Coles stock (ASX COL) investors must be pleased with the last month’s performance.

Outlook for Coles Group Ltd

Despite increasing interest rates and cost of living pressures, Coles Group predicts inflation will begin to ease this year. The firm says, however, that it is prepared for such shifts. A rise in population, a decline in eating out, and increased availability are all predicted to have a positive influence.

By the conclusion of the 2023 fiscal year, Coles Group Ltd anticipates spending between $1.2 and $1.4 billion on CAPEX.

Takeaway

Coles shares (ASX: COL) have been on a roller coaster ride this year. Should it be on your “to buy” list?

Last month was good for the stock, but the start for Coles shares this month is low. Now, let’s see the performance of Coles stock throughout March.

 

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