2 ASX 200 shares turning ex-dividend tomorrow

So far this month, we’ve seen a swarm of companies in the S&P/ASX 200 Index (ASX: XJO) turn ex-dividend.

Compared to other days this week, tomorrow will be a rather quiet affair with only two ASX 200 shares going ex-dividend. 

In other words, as of tomorrow, these shares will no longer be trading with entitlements to their respective upcoming dividend payments.

Let’s check them out.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Today will be the last day to snap up Nine Entertainment’s fully franked final dividend of 7 cents. It will be paid on 20 October.

FY22 was another year of growth for Nine. Starting at the top line of the income statement, double-digit growth in each of its divisions contributed to 15% revenue growth, which came in at $2.7 billion.

Stan was Nine’s fastest-growing business, with growth in active subscribers and average revenue per user (ARPU) leading to a 22% jump in revenue, which reached $381 million. However, Stan’s earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 28% to $29 million, primarily reflecting increased investment in Stan Sport.

Across the group, EBITDA climbed 24% to $701 million as the all-important broadcast division delivered EBITDA of $401 million, up 21% from the prior year.

Notably, Nine’s digital earnings grew by 47% in FY22 and now account for more than half of the group’s EBITDA.

This earnings growth helped Nine to declare record total dividends of 14 cents in FY22, up 33% from the prior year.

Nine shares are currently sporting a trailing dividend yield of 6.4%, which grosses up to 9.2% including franking credits.

Speaking of sport, Nine made a play for the AFL broadcasting rights that were up for grabs from 2025 onwards. But ultimately, the AFL decided to stick with current partners Seven West Media Ltd (ASX: SWM), Foxtel, and Telstra Corporation Ltd (ASX: TLS); signing a seven-year deal worth $4.5 billion.

WiseTech Global Ltd (ASX: WTC)

WiseTech is the other ASX 200 share turning ex-dividend tomorrow.

Unlike Nine, WiseTech is more of an ASX growth share that offers shareholders token dividends.

The company recently announced a fully franked final dividend of 6.4 cents, which is dwarfed by WiseTech’s current share price of $57.53.

WiseTech posted revenue of $632 million in FY22, up 25% on the prior year and at the top end of guidance.

Revenue from the company’s flagship CargoWise solution grew by 35% to $448 million. This was underpinned by large global freight forwarder rollouts, new customer wins, and increased usage from existing customers.

Impressively, the ASX 200 tech share improved its EBITDA margin by nine percentage points to 50%. The company said this reflected enhanced operating leverage, the benefits of exceeding its cost reduction program targets, and pricing offsetting inflation.

As a result, EBITDA jumped by 54% to $319 million while underlying net profit after tax (NPAT) surged 72% to $182 million.

The company expects this momentum to roll into FY23. It’s guiding for revenue growth in the range of 20% to 23% and EBITDA growth in the range of 21% to 30%.

In terms of dividends, WiseTech declared total dividends of 11.15 cents in FY22, up 72% from the prior year. 

This represents a dividend payout ratio of 20% of underlying NPAT and puts WiseTech shares on a meagre trailing dividend yield of 0.2%.

The post 2 ASX 200 shares turning ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• ASX 200 tech shares are getting hammered on Monday. Here’s why
• Here are the top 10 ASX 200 shares today
• Nine Entertainment hikes full-year dividend by 33% as profits surge higher
• Nine Entertainment share price takes off after 71% profit boost and ‘record’ dividend
• ‘Bright outlook’: Expert picks 2 ASX shares that touch Aussies everyday

Motley Fool contributor Cathryn Goh 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited and WiseTech Global. 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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