Blackmores Limited (ASX: BKL) shareholders might be wondering why the share price has fallen 0.52% to $75 today.
The health supplements company released its half-year results on 24 February, reporting strong growth across key financial metrics.
In turn, the board opted to ramp up its upcoming interim dividend to eligible investors.
Let’s take a look below at why Blackmores shares are edging lower during morning trade.
Shareholders set eyes on Blackmores’ interim dividend
The Blackmores 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 Blackmores 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 Blackmores’ interim dividend, shareholders will receive a payment of 63 cents per share on 12 April. The dividend is fully franked.
Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.
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 24 March to 30 March.
The DRP discount rate is set at 2.5%, and the last election date for shareholders to opt-in is 24 March.
Blackmores share price summary
Since the beginning of 2022, Blackmores shares have lost 17% on the back of weakened investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 1% over the same timeframe.
The Blackmores share price reached an all-time high of $103.97 in November, before backtracking amid inflationary movements and geopolitical tensions.
Based on today’s price, Blackmores commands a market capitalisation of roughly $1.46 billion and has a trailing dividend yield of 0.94%.
The post Why is the Blackmores (ASX:BKL) share price sliding today? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Tuesday
- Own Blackmores (ASX:BKL) shares? Here’s how the company is aiming for 1 billion consumers
- 5 ASX shares trading ex-dividend next week
- Leading brokers name 3 ASX shares to sell today
- Why this broker just downgraded Blackmores (ASX:BKL) shares to a sell rating
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 Blackmores 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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