Why is the Whitehaven share price burning lower on Thursday?

You may be wondering why the Whitehaven Coal Ltd (ASX: WHC) share price is tumbling 2.84% to $7.78 today.

With the earning seasons wrapped up for most of the companies on the ASX, Whitehaven is now trading ex-dividend.

This comes after the coal producer delivered a robust full-year result last month, reporting a record $1.95 billion profit.

Subsequently, the board opted to declare a mammoth fully franked dividend of 40 cents per share.

Below, we take a closer look at Whitehaven’s latest dividend and when shareholders can expect payment.

Shareholders lock in Whitehaven’s huge final dividend

Following the company’s record performance, investors are selling off Whitehaven shares after securing the final dividend.

If you bought the company’s shares before market close yesterday and held onto them until this morning, you’ll be eligible for the dividend.

On 16 September, you should check your bank account as that’s when Whitehaven will make the dividend payment.

In case you were wondering, there’s no dividend reinvestment plan (DRP) currently being offered.

During the first half of FY 2023, Whitehaven aims to complete the 10% buyback within its previously announced cap of $550 million. The board will seek shareholder approval to increase its share buyback programme at the company’s annual general meeting in October.

The full-year dividends totalling $449 million and the $550 million buy-back represent a total payout ratio of 51% of FY 2022 net profit after tax (NPAT).

Whitehaven share price summary

Since the beginning of 2022, the Whitehaven share price has rocketed 196% on the back of favourable coal prices.

In comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 37% over the same timeframe.

Whitehaven shares reached an all-time high of $8.17 on Tuesday before retracing yesterday and today.

Based on today’s price, Whitehaven commands a market capitalisation of approximately $7.61 billion and has a dividend yield of 5.19%.

The post Why is the Whitehaven share price burning lower on Thursday? appeared first on The Motley Fool Australia.

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More reading

• These were the best performers on the ASX 200 in August
• Looking to get your hands on the monster Whitehaven dividend? Read this
• 3 popular ASX 200 shares going ex-dividend tomorrow
• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• 3 ASX 200 energy shares smashing multi-year highs on Tuesday

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 Scott Phillips.

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