The Magellan Financial Group Ltd (ASX: MFG) share price rocketed on Friday.
This came on the back of the company’s impressive FY22 first-half results, declaring a monster dividend for shareholders.
The fund manager’s shares surged to an intraday high of $22.01 before settling back to $21.70, up 18.45% at market close.
Earlier this month, Magellan shares hit a multi-year low of $16.14 after the company delivered two disappointing announcements. If you were brave enough to pick up its shares during this time, you’d be sitting on a 35% gain.
Below we take a look at Magellan’s latest financial performance and its huge interim dividend for investors.
What’s the lowdown on the Magellan dividend?
In the half-year report for the 2022 financial year, Magellan reported double-digit growth across key metrics.
In summary, average funds under management (FUM) increased by 12% to $112.7 billion over the previous corresponding period. This was primarily driven by investment performance and also by client inflows, outflows and distributions to clients.
Overall, net profit after tax (NPAT) rose to $251.6 million, a lift of 24% compared to $202.3 million in the prior year.
Based on Magellan’s robust performance, its board declared a partially franked interim dividend of 110.1 cents per share. This represents a 13.4% decline from the 97.1 cents declared in the prior comparable period.
Management noted that its policy is to pay out a dividend between 90% to 95% of profit after tax of the group’s funds management business.
When can Magellan shareholders expect payment?
Magellan will pay the interim dividend to eligible shareholders on 8 March.
However, to be eligible you’ll need to own Magellan shares before the ex-dividend date which falls on Wednesday 23 February. This means if you want to secure the dividend, you will need to purchase Magellan shares by tomorrow at the latest.
It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.
The post Here’s what you need to know about the Magellan (ASX:MFG) monster dividend appeared first on The Motley Fool Australia.
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More reading
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- Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher
- ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
- ‘Robust financial position’: Magellan (ASX:MFG) share price surges 13% on half-year earnings
- Is the Magellan (ASX:MFG) share price a smart contrarian buy?
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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