The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is having a tough start to the week.
In morning trade, the banking giantâs shares are down almost 4% to $24.54.
Why is the ANZ share price falling?
The good news for shareholders is that the weakness in the ANZ share price has nothing to do with a broker downgrade or a trading update.
Instead, todayâs decline is almost entirely attributable to the bankâs shares trading ex-dividend this morning for its latest dividend.
When a share trades ex-dividend, it means that the rights to an upcoming dividend payment are now settled and will remain with shareholders that owned them at the close of play the previous trading session.
As a result, anyone buying shares today, will be buying shares without the rights to the dividend and they will remain with the seller. And given that you wouldnât want to pay for something you wonât receive, the ANZ share price has dropped to reflect this.
The ANZ dividend
Last month, ANZ released its full year results for FY 2022. For the 12 months ended 30 September, ANZ reported a 16% increase in statutory profit after tax to $7,119 million and a 5% lift in cash profit from continuing operations to $6,515 million.
This allowed the ANZ board to declare a fully franked final dividend of 74 cents per share, bringing its full year dividend to 146 cents per share. This was up from 142 cents per share in FY 2021.
Based on the ANZ share price at Fridayâs close, that final dividend equated to a yield of almost 3%. Eligible shareholders can now look forward to receiving this dividend next month on 15 December.
The post Why is the ANZ share price sinking 4% today? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- Brokers name 3 ASX shares to buy today
- 4 ASX 200 shares trading ex-dividend next week
- Hoping to bank the latest ANZ dividend? Read this
- Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
Motley Fool contributor James Mickleboro 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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