The Elders Ltd (ASX: ELD) share price is suffering on Monday after the company revealed disappointing first half earnings, including an 18% cut to its interim dividend.
The S&P/ASX 200 Index (ASX: XJO) agriculture company will provide shareholders with just 23 cents per share. Thatâs compared to the 28 cents per share it paid out this time last year.
Right now, shares in Elders are down 11.99%, trading at $7.31.
Letâs dive into all that those invested in the company need to know about their newly slashed interim payout.
Elders slashes interim dividend 18% to 23 cents per share
The market is bidding Elders shares lower on the back of a 46% tumble in first-half profits, as The Motley Fool Australia reported earlier.
Its earnings were dinted amid weaker conditions for the agriculture industry compared to a strong performance in the prior period. And now passive income investors might feel some of the impact.
The company declared a 23-cent per share, 30% franked, interim dividend this morning.
Thatâs dwarfed by the offerings it handed out last financial year. Though, it does come in 15% higher than the financial year 2021âs 20 cents per share, 20% franked, interim offering.
Elders shares will trade ex-dividend next Tuesday. That means would-be investors have a week to get on board the company or miss out on the payment.
Those invested in the company as of next Mondayâs close will see the dividend hit their accounts from 22 June.
Elders will run its dividend reinvestment plan (DRP) for its interim offering. Though, no discount will be applied to the shares provided. Investors have until 26 May to register to receive their dividend in the form of stock rather than cash.
But there’s a silver lining to the ASX 200 agriculture stock’s tumble.
Considering both its newly announced 23-cent dividend and its recent 28-cent final dividend, Elders shares trade with a 7% dividend yield at its current share price.
The post Own Elders shares? Your dividend was just slashed by 18% appeared first on The Motley Fool Australia.
Should you invest $1,000 in Elders Limited right now?
Before you consider Elders Limited, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Elders Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of April 3 2023
(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
- Elders share price plummets as half-year profit dumps 46%
- Goldman Sachs says buy these ASX 200 shares for passive income
- 5 things to watch on the ASX 200 on Tuesday
- Here are 2 ASX 200 dividend shares to buy with 6%+ yield: analysts
Motley Fool contributor Brooke Cooper 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 Elders. 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/kJUYNVC
Stock Pick 