Some ASX 200 (ASX: XJO) shares have the potential to pay a pleasing dividend in FY21 and beyond.
If a business is growing profit then the dividend can grow too. If a business can be reliable with the dividend then it could be an option for income:
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi has increased its dividend every year for almost a decade. In the FY21 half-year result, it grew the dividend by 81.8% to 180 cents per share.
Total sales grew by 23.7% to $4.9 billion in HY21, with online sales surging 161.7% to $678.8 million.
JB Hi-Fi’s EBIT (EBIT explained) grew by 76% to $462.8 million. The net profit after tax (NPAT) went up by 86.2% to $317.7 million. Profit / earnings per share (EPS) also grew by 86.2% to 276.5 cents.
The ASX 200 share’s management continued to focus on investing in online and supply chain operations, including upgrades to the group’s websites and expanded delivery and warehouse options.
The board said that it will continue to regularly review the amount of capital that the business has, with a focus on maximising returns to shareholders and maintaining balance sheet strength and flexibility. JB Hi-Fi’s half-year dividend payout ratio was around 65%.
Based on the latest JB Hi-Fi share price, it has a fully franked dividend yield of 5.6%.
Metcash Limited (ASX: MTS)
Metcash is a business that supplies a wide variety of businesses in the food sector such as IGA and Foodland. It also supplies liquor businesses like Cellarbrations, The Bottle-O, IGA Liquor, Duncans and Thirsty Camel.
The company also has a number of hardware businesses such as Mitre 10, Home Timer & Hardware and 70% of Total Tools.
Metcash saw a lot of growth in the FY21 half-year result with revenue up 12.2% to $7.1 billion and underlying profit after tax grew 43% to $129.6 million.
The above numbers helped the ASX 200 company grow its interim dividend by 33% to 8 cents per share. That brought the trailing dividend yield to 4%.
Metcash is seeing continued strong growth in the second half of FY21. In the first five weeks of the second half of FY21, hardware sales were up 25.3%, liquor sales went up 16.9% and food sales rose 2.4% (or 12.1% excluding the 7-Eleven impact).
That could help the profit and dividend grow in the second half of FY21.
