Should You Be Adding Coles Group (ASX:COL) To Your Watchlist Today?

Alright, listen up, investors! Today, we're going to take a closer look at Coles Group Limited (ASX: COL) and see if it's worth adding to your watchlist. This Aussie retailer has been making waves in the market, and it's time to see if the hype is justified.

First things first, let's talk about Coles Group's financial performance. The company has been consistently growing its earnings, with a 10.5% increase in earnings per share (EPS) in the 2024 financial year compared to the previous year. This growth is a testament to Coles Group's ability to adapt to changing market conditions and maintain its competitive edge.

Now, let's talk about dividends. Coles Group has a solid dividend history, with a consistent payout ratio of around 84%. The company has been increasing its dividend per share (DPS) over the past few years, with a current DPS of $0.66 and a gross DPS of $0.9429. This means that Coles Group is distributing a significant portion of its earnings to shareholders, demonstrating its commitment to shareholder returns.

But what about the competition? Coles Group faces stiff competition from other major retailers like Woolworths and Aldi. However, Coles Group has been differentiating itself by focusing on sustainability and omnichannel offerings. The company's investment in technology and automation, such as its partnership with Ocado, is also helping it to stay ahead of the competition.

So, should you be adding Coles Group (ASX: COL) to your watchlist today? Absolutely! The company's consistent earnings growth, solid dividend history, and commitment to innovation and sustainability make it a strong contender in the Australian retail market. Keep an eye on Coles Group's stock price and consider adding it to your portfolio if you're looking for a stable, long-term investment in the consumer defensive sector.