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    The Bull Case For Woolworths Group (ASX:WOW) Could Change Following Profit Lift, Higher Dividends And New Director Appointment – Learn Why

    Simply Wall St·09/05/2026 12:27:20
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    • Woolworths Group’s recent full-year results showed sales rising to A$71.54 billion and net income increasing to A$1.14 billion, alongside a fully franked final dividend of A$0.52 per share declared and paid in September 2026.
    • The board also lifted total dividends for the year by 15.5% to A$0.97 per share and appointed experienced retailer and former Wesfarmers finance chief Terry Bowen as a non-executive director, signaling a focus on boardroom financial depth and capital allocation expertise.
    • We’ll now explore how this stronger profitability and higher fully franked dividend affect Woolworths Group’s existing investment narrative and outlook.

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    Woolworths Group Investment Narrative Recap

    To own Woolworths Group, you need to believe in the resilience of its core food and everyday needs retailing, supported by disciplined capital use and steady earnings. The latest uplift in profitability and fully franked dividends supports this thesis and marginally strengthens the near term catalyst of improving margins, but it does not remove key risks such as intense price competition and cost pressures from shrinkage and store investments.

    The board’s decision to increase the total dividend to A$0.97 per share for FY26, up 15.5%, is the most directly relevant announcement here, because it links higher cash returns to shareholders with the recent improvement in NPAT. While welcome for income focused investors, it also sharpens the focus on whether future earnings can keep pace amid ongoing investment in supply chain automation, store technology and loss prevention.

    Yet investors should be aware that rising security, shrinkage and in store incident costs could still pressure Woolworths Group’s margins and cash flows...

    Read the full narrative on Woolworths Group (it's free!)

    Woolworths Group's narrative projects A$81.1 billion revenue and A$2.1 billion earnings by 2029.

    Uncover how Woolworths Group's forecasts yield a A$39.20 fair value, a 3% downside to its current price.

    Exploring Other Perspectives

    ASX:WOW 1-Year Stock Price Chart
    ASX:WOW 1-Year Stock Price Chart

    Three members of the Simply Wall St Community currently place fair value for Woolworths Group between A$39.20 and A$68.93, underscoring how far opinions can differ. You should weigh that spread against the recent profit and dividend uplift and consider how margin pressure from competition or shrinkage might shape the company’s future performance before siding with any one view.

    Explore 3 other fair value estimates on Woolworths Group - why the stock might be worth just A$39.20!

    Form Your Own Verdict

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.