WES 0.99% $66.85 wesfarmers limited

Inflated dividends ?

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    Mkt cap 48.23B

    1. Earnings before tax expressed as a percentage.
    P/E ratio 21.85 or
    4.57% 1/ 21.85

    2. Dividend before tax.
    Div yield 4.00%
    5.71% 4/7x10

    3. Earnings shortfall 5.71- 4.57
    1.14% in dividends paid above earnings.

    Hypotheses. They are paying dividends out of savings which has the effect of distorting the return on investment and financial health of the company.

    Do your own research. Happy to be proven wrong.
 
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