Dividend Stocks ASX: Coles (ASX:COL) 37c Fully Franked Final and Q1 Sales Update in Focus

Sonal Goyal

04 November 2026 10:49 PM AEDT

Dividend Stocks ASX: Coles (ASX:COL) 37c Fully Franked Final and Q1 Sales Update in Focus

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Key Highlights

The 37.0 cent fully franked final Dividend was paid on 22 September 2026.
FY26 dividends totalled 78.0 cents per share, with franking credits of about 33.43 cents.
Q1 FY27 group sales rose 2.2 per cent, and Supermarkets comparable sales rose 2.7 per cent.
The DRP operated at a nil discount for the final dividend.

Coles Group Limited (ASX:COL) is in focus for investors researching the dividend stocks on the ASX after the supermarket operator followed its 37.0 cent fully franked FY26 final dividend, paid on 22 September 2026, with a first-quarter sales update on 30 October. The Coles result for the year to 30 June 2026 took total FY26 dividends to 78.0 cents per share, fully franked, while the latest trading update flagged that first-half Supermarkets Earnings before interest and tax are expected to be in line with the prior corresponding period as the company absorbs higher fuel costs and invests in pricing.

Coles' FY26 dividend timetable

Coles released its FY26 result on 25 August 2026. The board declared a final dividend of 37.0 cents per share, fully franked, following an Interim Dividend of 41.0 cents per share, also fully franked. The Record Date for the final dividend was 4 September 2026 and payment was made on Tuesday 22 September 2026.

Coles' Dividend Reinvestment Plan (DRP) operated at a nil discount for the final dividend. The last date to elect to participate was 7 September 2026, and the DRP Offer Price was set as the arithmetic average of the daily Volume weighted average Market Price over the five trading days starting on 9 September 2026.

Franking credits on the Coles dividend

Both FY26 dividends were fully franked, meaning each carried franking credits reflecting company tax already paid. At the 30 per cent company tax rate, the franking Credit on the 37.0 cent final dividend is about 15.86 cents per share, giving a grossed-up value of about 52.86 cents. Across the full 78.0 cents of FY26 dividends, the attached credits total about 33.43 cents per share.

For Australian resident shareholders, the grossed-up dividend is included in assessable income and the franking credit offsets tax payable, with any excess refundable for eligible individuals. How that works for a particular investor depends on their marginal tax rate and on rules such as the 45-day holding period.

The FY26 result behind the dividend

Coles reported group sales Revenue of $45,580 million for FY26, up 2.8 per cent. Statutory earnings before interest and tax were $2,087 million, up 0.5 per cent, while EBIT excluding significant items rose 9.9 per cent to $2,322 million. Net profit after tax was $1,090 million, up 1.0 per cent, and net profit excluding significant items increased 13.7 per cent to $1,255 million. Supermarkets comparable sales growth for the year was 3.4 per cent.

In their joint message to shareholders, Managing Director and Chief Executive Officer Leah Weckert and Chairman Peter Allen wrote: "FY26 was a year of continued strategic progress for Coles in a complex operating environment."

First-quarter FY27 sales update

The first-quarter sales results covered the 13 weeks from 29 June to 27 September 2026. Group sales revenue rose 2.2 per cent to $11,209 million. Supermarkets sales increased 3.6 per cent to $10,320 million, with comparable sales growth of 2.7 per cent. Supermarkets eCommerce sales grew 22.9 per cent to $1,623 million, taking online penetration to 15.7 per cent.

Liquor sales fell 1.3 per cent to $831 million, with comparable sales also down 1.3 per cent. Supermarkets inflation, excluding tobacco, was 1.0 per cent for the quarter. The growth in online sales means a larger share of Coles' revenue now comes through home delivery and click and collect, which carries its own fulfilment costs. In Liquor, Coles said trends in its Warehouse format improved during the quarter and that eCommerce sales through its website rose by almost 20 per cent.

Ms Weckert said "we know household budgets are under pressure" and that Coles is "taking action to sharpen our offer over the coming months". The company said it is investing in value, including a relaunch of its Every Day Price program and its largest Exclusive to Coles Christmas range. It expects higher fuel costs in the first half and Supermarkets EBIT for the half to be in line with the prior corresponding period, while early second-quarter Liquor sales declines are broadly in line with the first quarter.

Consumer staples and the household backdrop

Consumer staples were among the sectors that moved higher on the ASX on 4 November 2026, alongside utilities and energy, while materials, industrials and healthcare were lower. Australian Bureau of Statistics data released the same day showed household spending rose 0.6 per cent in September, led by transport and health.

The Reserve Bank of Australia raised the cash rate target by 25 basis points to 4.85 per cent on 3 November 2026, saying Inflation "remains elevated" and that higher fuel and Commodity prices linked to the Middle East conflict are adding to inflation. Supermarket operators sit at the centre of that environment because they face higher costs, including fuel, while customers manage tighter budgets.

What Coles shareholders can watch next

With the FY26 dividends paid, the next dividend decision is expected with Coles' FY27 half-year result. Key markers include whether Supermarkets EBIT lands in line with the prior corresponding period as guided, how the Every Day Price relaunch and Christmas trading affect sales, and the trend in Liquor. The amount and franking of the interim dividend, and the DRP terms, will be confirmed by the board at that time. Shareholders can review the dividend statements issued by the registry for the franked amounts and franking credits used in tax returns.

Key Takeaways

Coles Group Limited (ASX:COL) paid a 37.0 cent fully franked final dividend on 22 September 2026, after a record date of 4 September, bringing FY26 dividends to 78.0 cents per share with franking credits of about 33.43 cents. Its first-quarter FY27 update showed group sales up 2.2 per cent and Supermarkets comparable sales growth of 2.7 per cent, with first-half Supermarkets EBIT expected in line with the prior period. For investors researching the dividend stocks on the ASX, Coles shows how dividend capacity links to trading conditions, costs and household spending.

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