Telstra Corp Ltd (ASX: TLS) shareholders might be wondering why the share price has fallen 2.02% to $3.88 today.
The telco provider released its half-year results on 17 February, reporting mixed numbers across key financial metrics.
Nonetheless, the board opted to maintain its upcoming interim dividend to eligible investors.
Let’s take a look below at why Telstra shares are falling during early morning trade.
Shareholders set eyes on Telstra’s interim dividend
The Telstra share price is in reverse following the company’s shares trading ex-dividend today.
Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased the company’s shares. If the investor does not buy shares before this date, the dividend will go to the seller.
Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.
When can shareholders expect to be paid?
For those eligible for Telstra’s interim dividend, shareholders will receive a payment of 8 cents per share on 1 April. The dividend is fully-franked, which means investors can expect to receive tax credits from this.
Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 7 March to 11 March.
There is no DRP discount rate and the last election date for shareholders to opt in is on 4 March.
In total, the company will be paying out 67% of its free cash flow, which is 4 percentage points higher than H1 FY21.
Telstra share price summary
Since the beginning of 2022, Telstra shares have lost 5% on the back of weakened investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 5% over the same timeframe.
Telstra shares reached an all-time high of $4.31 last month, before backtracking on inflationary movements and geopolitical tensions.
Based on today’s price, Telstra commands a market capitalisation of roughly $46.52 billion and has a trailing dividend yield of 4.04%.
The post What’s with the Telstra (ASX:TLS) share price today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. 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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