The All Ordinaries Index (ASX: XAO) is experiencing a bit of a pullback today. At the time of writing, the All Ords has slipped by 1.45% and is back below 6,900 points. But that pales in comparison to the Rural Funds Group (ASX: RFF) share price today.
Rural Funds shares are currently down a painful 3.47% to $2.64 each. That comes after the agricultural real estate investment trust (REIT) closed at $2.74 yesterday, but opened at $2.69 this morning.
So why is Rural Funds underperforming so dramatically today?
Why is the Rural Funds share price falling on Wednesday?
Well, it’s for one of the best reasons to have your shares fall in value. Today is the day that Rural Funds shares have traded ex-dividend for the REIT’s upcoming dividend distribution.
When an ASX share declares a dividend payment for shareholders, it also declares a date that new shareholders are excluded from being eligible to receive the upcoming payment. This is known as the ex-dividend date.
Seeing as new Rural Funds shareholders from today are ineligible for the company’s next payment, the payment’s value has left the Rural Funds share price. That is why we are seeing such an apparent drop in value for this REIT today.
So investors can now look forward to the quarterly dividend distribution of 2.93 cents per share that will be paid on 29 July next month. Rural Funds Group typically doles out four quarterly dividend distributions a year.
This upcoming payment will be the fourth to consist of a 2.93 cents per share payment. June 2021’s distribution was worth 2.82 cents per share, so this payment represents a 3.9% increase over the previous year.
At the current Rural Funds share price, this agricultural ASX REIT has a market capitalisation of $1.01 billion. Put together, the past four dividend distributions of 2.93 cents per share each now give Rural Funds a trailing yield of 4.44% at this pricing.
The post Why the Rural Funds share price is falling today appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of June 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Here are 2 ASX dividend shares with 4%+ yields
- Here are 2 ASX dividend shares with 4%+ yields
- 2 ASX shares I want to buy more of for my portfolio
- 3 quality ASX 300 shares with dividend reinvestment plans
Motley Fool contributor Sebastian Bowen 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 positions in and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/t1yPWCq
Leave a Reply