Time is almost out to secure the Collins Foods dividend. Here’s what you need to do

The Collins Foods Ltd (ASX: CKF) share price has been climbing over the past week.

In fact, since the release of the company’s full-year results on 28 June, the restaurant operator’s shares are up by more than 6%.

At the time of writing, Collins Foods share are travelling 0.86% higher for the day to $10.60.

Let’s take a look at what’s driving these gains.

Collins Foods shares set to trade ex-dividend

Despite the volatility impacting ASX shares of late, the Collins Foods share price has continued to rise.

It appears investors have been jumping on board ahead of the ex-dividend date for the company’s shares.

Investors need to buy Collins Foods shares before market close today to be eligible for the final dividend. The ex-dividend date is on Friday 8 July.

Historically, when a company reaches its ex-dividend day, its shares tend to fall after shareholders lock in the latest dividend.

When is payday for Collins Foods shareholders?

For those eligible for the Collins Foods dividend, shareholders will receive a payment of 15 cents apiece on 1 August.

This brings the full-year dividend to 27 cents, and reflects a 17.4% lift from the previous financial year.

The dividend is also fully franked.

Franking credits, or 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.

In addition, investors can elect for the dividend reinvestment plan (DRP), which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 13 July to 26 July.

The last election date for shareholders to opt-in to the DRP is 12 July.

Share price snapshot

Since the start of 2022, the Collins Foods share price has travelled more than 20% lower following tough macroenvironmental conditions.

The company’s shares reached a 52-week low of $8.04 last month, before treading higher in the following weeks.

Collins Foods commands a market capitalisation of roughly $1.24 billion and has a dividend yield of 2.36%.

The post Time is almost out to secure the Collins Foods dividend. Here’s what you need to do appeared first on The Motley Fool Australia.

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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 positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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