ARB Corporation (ASX:ARB) share price rises as stock goes ex-dividend

Two women in 4WD vehicle with one throwing her arms in the air

The ARB Corporation Limited (ASX: ARB) share price is pushing upwards on Thursday, slightly rebounding from its 9% losses last month. This comes despite the 4×4 accessories company not releasing any market-sensitive news today.

At the time of writing, ARB shares are up 2.08% to $47.02 apiece.

ARB shares go ex-dividend

While the company hasn’t provided the ASX with any fresh news, investors are buying up ARB shares regardless of the stock going ex-dividend.

Investors need to buy shares before the ex-dividend date to be paid the dividend. Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out.

However, a possible catalyst for the rising ARB share price could be that the S&P/ASX 200 Index (ASX: XJO) is steaming ahead. As such, the benchmark index is up 0.60% to 7,250 points, rubbing out yesterday’s 0.58% decline.

What does this mean for ARB shareholders?

For those who are eligible for the ARB’s final dividend, shareholders will receive a payment of 39 cents per share on 22 October. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will see a 2% discount applied to the volume-weighted average price. This is for the 5 trading days subsequent to, and inclusive of, the ex-dividend date period.

The last election date for shareholders to opt-in to the DRP is 13 October.

ARB share price summary

It has been a strong year for the ARB share price, which is trekking around 50% higher for both 2021 and in the last 12 months. The company’s shares are around 13% lower than their all-time high of $54.46 reached in late August.

Based on today’s price, ARB commands a market capitalisation of roughly $3.85 billion, and has approximately 81.5 million shares outstanding.

The post ARB Corporation (ASX:ARB) share price rises as stock goes ex-dividend appeared first on The Motley Fool Australia.

Should you invest $1,000 in ARB right now?

Before you consider ARB, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ARB wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s