The Bank of Queensland Ltd (ASX: BOQ) share price has come under pressure on Wednesday morning.

At the time of writing, the regional bank’s shares are down 4% to $5.65.

Why is the Bank of Queensland share price tumbling?

The good news for shareholders is that today’s weakness has nothing to do with another banking collapse.

In fact, while nobody likes to see a share decline, this one is arguably a positive for shareholders.

That’s because today is the day that the bank’s shares to trade ex-dividend.

When a share trades ex-dividend, it means that the rights to an upcoming dividend payment are now settled. In light of this, a share will usually decline in line with the dividend to reflect this.

After all, if you were a buyer of its shares today, you wouldn’t be entitled to receive this dividend, so why would you pay for it?

The Bank of Queensland dividend

Last month, Bank of Queensland released its half-year results and reported a 4% decline in cash earnings to $256 million. While its earnings were supported by margin tailwinds, a 7% increase in expenses offset this.

As you might expect, this earnings decline led to the Bank of Queensland board cutting its fully franked interim dividend. It came in 9% lower year over year at 20 cents per share.

Though, despite this cut, this still represents an attractive 3.4% yield based on where the Bank of Queensland share price was trading on Tuesday.

Eligible shareholders can now look forward to receiving this dividend in their bank accounts at the very start of next month on 1 June.

And if analysts at Morgans are on the money with their estimates, they can also look forward to another 20 cents per share fully franked dividend later this year when the bank releases its full-year results.

The post Why is the Bank of Queensland share price taking a 4% tumble today? appeared first on The Motley Fool Australia.

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More reading

• Hoping to bag the next Bank of Queensland dividend? You’d better be quick
• The Bank of Queensland share price crumbled 11% in April. Here’s why
• Bank of Queensland share price dips following more losses for US regional banks
• Why did the Bank of Queensland share price just hit a new 52-week low?
• Bought $2,000 of Bank of Queensland shares five years ago? If so, here’s how much dividend income you’ve earned

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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The Dicker Data Ltd (ASX: DDR) share price is pushing higher on Wednesday.

In morning trade, the ASX tech share is up 6% to $8.88.

Why is this ASX tech share rising today?

Investors have been bidding Dicker Data’s shares higher today after they responded positively to the release of the computer hardware and software distributor’s first-quarter update.

According to the release, for the three months ended 31 March, Dicker Data delivered a 14.7% increase in total revenue to $772.3 million and 6.7% lift in net profit before tax to $25.4 million.

In respect to its revenue growth, management advised that this growth was driven partly by a full quarter contribution from Hills acquisition that was not in the comparative period.

The balance is attributable to organic growth from existing and new vendors and increases in other income, representing year on year organic growth of 9.7%.

One of the reasons the company’s profits did not grow in line with revenue was its DAS business. It reported quarterly revenue of $33.4 million but has yet to deliver a profit. However, management advised that the first quarter was focused on cost rationalisation and it now expects the unit to be profitable from the second quarter.

Positively, the tech share reported an increase in its gross margin to 9.2%. This was in line with expectations and up from 8.6% a year earlier.

Dicker Data Chairman and CEO, David Dicker, commented:

We delivered a pleasing result in the first quarter of 2023, buoyed by a strong monthly revenue result in March. Revenue was up by 14.7% on the prior corresponding period and profit before tax remained strong increasing 8.8%, excluding one-off costs. We expect to see the upside of operational refinements undertaken during the first quarter within the next three to six months, putting us in a strong position to deliver on shareholder expectations in FY23.

Finally, the ASX tech share expects to continue paying out 100% of after-tax profits in FY 2023. This is expected to see three interim dividends of 10 cents per share before a final dividend in March 2024.

The post Here’s why this ASX tech share is storming 6% higher on Wednesday appeared first on The Motley Fool Australia.

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More reading

• These ASX income shares have very big forecast dividend yields
• 3 ASX 300 shares being bought up by insiders
• Brokers say buy these ASX dividend stocks for their big fully franked yields
• Passive income alert! Experts say buy these ASX dividend shares with big and growing yields
• Get a passive income boost from these ASX dividend shares: analysts

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 positions in and has recommended Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. 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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The S&P/ASX 200 Index (ASX: XJO) stock Pinnacle Investment Management Group Ltd (ASX: PNI) could be a smart buy to achieve considerable monthly passive income as dividends.

Just to be clear, the business doesn’t actually pay a dividend every single month. But, investors can use the annual dividend payment and then split that into 12 equal monthly amounts.

What does Pinnacle do?

Pinnacle is an investment business that has a growing “family” of investment management businesses (affiliates). The ASX 200 stock has stakes in its affiliates, and provides “seed funding, global institutional and retail distribution, and industrial grade middle office and infrastructure services”.

Some of the businesses that it’s involved with include Aikya, Antipodes, Coolabah, Firetrail, Five V, Hyperion, Langdon, Long Wave, Metrics, Plato, Solaris, and Spheria.

The company benefits from the funds under management (FUM) growth of the underlying businesses, and every so often it invests in a new fund manager which opens up a new growth avenue.

Monthly passive income goal

To create $1,000 of monthly income, we’re talking about $12,000 of annual income from the ASX 200 stock.

Commsec numbers suggest that Pinnacle could pay an annual dividend per share of 31.2 cents in FY23. That means investors would need to own 38,462 Pinnacle shares to get $12,000 of annual income in cash, excluding the franking credits.

To buy that many Pinnacle shares, it would currently cost around $340,000. That’s a big investment.

But FY24 isn’t far away, so let’s use the projected numbers for the upcoming financial year.

According to Commsec, Pinnacle is projected to pay an annual dividend per share of 35.9 cents per share in FY24. That would mean that we’d only need to buy 33,427 Pinnacle shares. This would be a total cost of around $295,000, which is clearly a fair bit less expensive, but still a hefty investment.

However, the business could continue to grow its dividend in the coming years.

What could drive the Pinnacle passive income higher?

Pinnacle’s earnings have fallen in the short term as the company’s investment managers suffered from falling asset prices and limited performance fee revenue.

However, FUM could return to growth if asset prices stop falling and go back to long-term growth. FUM could also rise if investors start allocating money to fund managers again. Those existing fund managers could also launch new funds and we could also see Pinnacle invest in new fund managers.

I think the future looks very bright for this ASX 200 stock and I believe the next two years look promising for the business and the passive income it could generate.

The post Keen for $1,000 of monthly passive income? Buy 38,462 shares of this ASX 200 stock appeared first on The Motley Fool Australia.

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• 3 ASX 200 building shares that could rise now that house prices have bottomed
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• No savings at 40? Here’s how I’d aim to build a passive income of $3,000 a month

Motley Fool contributor Tristan Harrison 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. 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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Two ASX 200 travel stocks have just received a broker upgrade from the team at Citi.

Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX: CTD) could be a buy.

Flight Centre shares shed 1.01% to $21.52 on Tuesday, while Corporate Travel Management shares slid 0.91% to $20.71.

Let’s take a look at what could be ahead for these two ASX travel stocks.

Travel shares could rebound

Flight Centre and Corporate Travel have both been upgraded to buy from neutral by the team at Citi.

Citi vice-president Sam Seow is forecasting a boost in passenger numbers, more corporate travel and greater supplier margins in FY24 if travel goes back to normal, The Australian reported. In quotes cited by the publication, he said:

Looking forward, our view is relatively simple. We estimate the business models most impacted at the start of the recovery should be the winners at the end.

He has placed a $23.80 price target on Flight Centre shares, which applies a 10.6% upside based on the company’s last closing price. Meanwhile, he has elevated Corporate Travel to a $25.50 price target, implying an upside of about 23%.

Tourism Research Australia is forecasting total visitor spending (domestic and international) to top pre-COVID-19 levels in 2023 and hit $227.7 billion by the year 2027. Domestic overnight and day trip spending is already higher than before COVID-19, while international expenditure is expected to exceed pre-COVID in 2024.

Flight Centre’s total transaction volume in the 10 months to April 30 was in line with the company’s record FY19.

The company upgraded its FY23 guidance to an EBITDA between $270 and $290 million, up from a previous guidance of $250 to $280 million.

Corporate Travel Management advised it had won a major contract with the UK government in April. This is worth about £1.6bn (nearly $3 billion Australian dollars).

Meanwhile analysts at Morgans have also recently named Corporate Travel Management as an “ASX growth stock to buy”. The broker has a $24 price target on the travel company’s share price. Morgans said:

TD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. 

Share price snapshot

Flight Centre shares have risen 3.96% in the last year.

Corporate Travel Management shares have lost 3.72% in the last year.

The post 2 ASX 200 travel stocks (not Qantas!) just upgraded by Citi appeared first on The Motley Fool Australia.

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More reading

• Buy these top ASX growth stocks: experts
• The Flight Centre share price just rocketed to a new 52-week high. Here’s why
• Which ASX 200 travel share has already taken off by 48% in 2023?
• Here are the 10 most shorted ASX shares
• ‘We’ve learnt the hard way’: 3 ASX shares that can grow in tough times

Motley Fool contributor Monica O’Shea 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 Corporate Travel Management and Flight Centre Travel Group. 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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The last five years have been rough for the Suncorp Group Ltd (ASX: SUN) share price. Stock in the financial services conglomerate has tumbled to trade at $12.53 as of Tuesday’s close.

However, looking back to May 2018, an investor sinking $9,000 into the stock likely would have snapped up 629 shares, paying $14.30 apiece.

Today, that parcel would be worth around 12% less – just $7,881.37.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 19% in that time.

Fortunately, Suncorp shares have proven to provide consistent dividends over the years. Here’s how much dividend income an investor who bought into the stock five years ago has likely realised.

All dividends paid to holders of Suncorp shares since 2018:

Here are all the dividends paid to those invested in Suncorp shares since May 2018:

As readers can see, each Suncorp share has yielded $3.09 of dividend income over the last five years. That negates any share price losses experienced in that time.

It also means our figurative investment has provided a total of $1,943.61 in dividends over its life.

That brings its return on investment (ROI), considering both share price gains and dividend income, to 9.2%.

And that’s before considering the potential benefits the payments could have brought for some investors at tax time. All the dividends paid to those holding Suncorp shares over the last five years have been fully franked.

Right now, Suncorp shares offer a 3.99% dividend yield.

The post Invested $9,000 in Suncorp shares in 2018? Here’s how much dividend income you’ve realised appeared first on The Motley Fool Australia.

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• Brokers say these ASX dividend shares are top buys

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 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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The Commonwealth Bank of Australia (ASX: CBA) share price has dropped 3% since 1 May 2023 and it is down 11% from 14 February 2023.

The last few months have been very interesting for the ASX bank share sector. When CBA released its FY23 first-half result in February, CEO Matt Comyn talked about intense competition in the sector. It sounded like bad news for a lot of the sector.

Earlier this week, the bank released its FY23 third-quarter update.

Let’s have a quick reminder of some of those quarterly numbers.

Earnings recap

It made $2.6 billion of cash net profit in the three months to 31 March 2023. This was a 10% increase year over year.

But, compared to the FY23 first-half quarterly average, cash net profit only grew by 1%. The bank said its income was flat – there was volume growth and higher non-interest income, but there were two fewer days in the quarter and lower net interest margins (NIM) from “competitive pressures”.

But, expenses were also flat.

CBA reported a loan impairment expense of $223 million, which saw collective and individual provisions “slightly higher”. The ASX bank share said that portfolio credit quality remained “sound”.

The capital position on the bank’s balance sheet is “strong”, with a common equity tier 1 (CET1) ratio of 12.1%.

What to make of this?

Brokers were a bit mixed on what to think about this result and the CBA share price.

The Australian reported on comments by Citi’s Brendan Sproules. He suggested that the CBA NIM in the third quarter was “surprisingly weak” at around 2.05%. Sproules said:

A soft result relative to market expectations, although not surprising given the context of recent peer results.

We think the implied NIM of about 2.05% for the quarter and lower monthly exit NIM implies a 4Q NIM that starts closer to about 2%.

Coupled with the funding task, this would explain CBA’s price leadership on deposits, and also their recent flagged decision to moderate mortgage cash backs.

The Citi analyst suggests that the market is forecasting a NIM of 2.11% in the FY23 second half, which may mean the market reduces its profit expectations in the current half.

Citi currently has a sell rating on the business, with an $80 CBA share price target. That suggests a fall of around 18% over the next 12 months.

But, The Australian reported on UBS analyst John Storey’s comments, who also noted the decline of NIM, which is also being seen by peers. But, it was noted that CBA’s loan book is holding up well, which is supporting cash earnings.

But, Storey thinks that the bank is going to be able to hit the cash earnings target in the fourth quarter of FY23.

For UBS, the CBA share price target is $100 and it has a neutral rating. That suggests a possible rise of around 2.7%.

CBA share price snapshot

Since the start of the year, the CBA share price is down around 7%.

The post Is the CBA share price running out of steam? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• CBA share price slips today despite $2.6 billion cash profit
• What’s the outlook for the CBA share price in May?
• Banking crisis continues: What’s up (and down) with ASX 200 bank shares today?
• Here’s how I’d aim for $200 a month in passive income using ASX 200 bank shares

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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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As well as giving investors opportunities to invest in indices and sectors from across the globe, some exchange traded funds (ETFs) have been set up to allow you to focus on a particular investment objective.

One of those objectives is dividend income.

With that in mind, let’s get better acquainted with two ASX ETFs that provide investors with a nice income stream.

Here’s what you need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The BetaShares S&P 500 Yield Maximiser could be a top ASX ETF to buy if you’re searching for income.

This ETF is somewhat unconventional. That’s because it uses a clever equity income investment strategy over a portfolio of shares comprising the famous S&P 500 Index on Wall Street.

By doing so, the fund manager is able to deliver a greater dividend yield than you would expect to receive from buying the 500 stocks. Betashares notes that the additional income generated by UMAX’s strategy may partly offset potential losses in falling markets.

For example, at present, the BetaShares S&P 500 Yield Maximiser’s units are offering investors an impressive 6.9% distribution yield.

Among the shares listed on the S&P 500 index are dividend-payers such as Apple, Bank of America, Exxon Mobil, Home Depot, and Walmart.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is a more traditional ASX ETF.

It uses broker research to build a diverse portfolio of ASX shares that have higher forecast dividend yields relative to the rest of the market.

Vanguard highlights that the ETF could be suitable for buy and hold investors that are seeking long-term capital growth, some tax effective income, and with a higher tolerance for the risks associated with share market volatility.

At present there are 72 ASX shares included in the portfolio. These include giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and Woodside Energy Group Ltd (ASX: WDS).

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forecast dividend yield of 5.3%.

The post Buy these ASX ETFs for big dividend income appeared first on The Motley Fool Australia.

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• Buy these ASX ETFs for their big dividends this month
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• 2 fantastic ETFs for ASX investors to buy next week
• 5 steps to bring in $1,000 per month in passive income

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 positions in and has recommended BetaShares S&p 500 Yield Maximiser Fund, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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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 Warren Buffett and his US$114 billion fortune are renowned among investors. Not only is the ‘Oracle of Omaha’ an incredibly successful stock picker, but he is also generous with his investing advice.

And while I generally find mountains of value in Buffett’s liberally offered wisdom, there’s one topic on which I wholeheartedly reject following his lead when investing on the ASX.

Here are two pieces of Buffett’s investing advice I follow to the letter, and one that I ignore.

2 pieces of Warren Buffett advice I live by

Number 1:

Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.

There are many Buffett quotes that portray a message similar to the one above. And for good reason, in my opinion.

As we absorb endlessly scrolling tickers and peruse dry fundamentals, it’s easy to forget that investing on the stock market is, essentially, the same as buying chunks of businesses.

Buffett built much of his wealth by buying such chunks of quality businesses at decent prices and holding them as they grew.

That’s the same long-term approach I aim to take when investing on the ASX.

Number 2:

Widespread fear is your friend as an investor, because it serves up bargain purchases.

The second piece of Buffett wisdom I aim to live by isn’t always easy to follow. Fear is rarely a comfortable sensation to stomach, particularly when it seems like your hard-earned cash could be at stake.

But market corrections and bear markets are an almost unavoidable part of investing. And there’s nearly always a silver lining when it comes to tough times on the market.

They often see shares in quality businesses tumble, creating an opportunity for bargain-hunting investors to ‘buy the dip‘. Without a little fear, such opportunities might never come knocking.

And the 1 piece of Warren Buffett advice I ignore:

We think diversification, as practiced generally, makes very little sense for anyone that knows what they’re doing. Diversification is the protection against ignorance.

Now, I’d never go so far as to disagree with Buffett. It’s clear he knows what he is doing when it comes to wealth building.

Not to mention, the above quote is often consumed without context, found within the accompanying video, wherein Buffett continues, “[diversification] is a perfectly sound approach for somebody who does not feel they know how to analyse businesses”.

I don’t doubt that the brains behind Berkshire Hathaway find little merit in diversification. However, it stands to reason that very few investors are as good at analysing businesses as Buffett has proven to be.

For the average investor, diversification offers protection against single-sector or -company downturns. By building a diverse portfolio, one might even boast a better chance of owning the market’s next big thing.

Thus, I believe the majority of investors could benefit from building a diverse portfolio of ASX shares, and perhaps adding a few other asset classes for good measure.

The post 2 pieces of Warren Buffett investing advice I live by, and the 1 that I ignore appeared first on The Motley Fool Australia.

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• What’s the forecast for the Fortescue share price this month?
• How my ASX share portfolio is ready for a stock market crash
• ‘Sell-off is overdone’: Morgans says this ASX share is a bargain
• Why Goldman has this ASX All Ords share on its conviction list and is tipping almost 50% upside
• ‘Upside surprise’: 2 small-cap ASX shares ready to break out

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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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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The Fortescue Metals Group Ltd (ASX: FMG) share price fell in April, but could it recover in May?

Fortescue shares slid nearly 7% from $22.49 to $20.94 a share in April. On Tuesday, Fortescue shares fell 0.29% to close at $20.58 apiece.

Let’s take a look at what could be ahead for the Fortescue share price.

What is the outlook ahead?

Analysts are bearish on the Fortescue share price going forward, as my Foolish colleague James reported recently.

Fortescue is a major iron ore producer that is also diversifying to green renewables via Fortescue Future Industries.

The iron ore price is a major factor likely to weigh on Fortescue shares going forward, along with progress on the company’s decarbonisation plans.

Goldman believes Fortescue shares are trading at a premium to fellow mining giants Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP). Goldman said:

[T]he stock is trading at a premium to RIO & BHP on our estimates; 1.4x NAV [net asset value] vs. BHP at c. 0.95x NAV and RIO at 0.9x NAV, c. 5.5x NTM EV/EBITDA (vs. BHP/RIO on c. 5x/3.5x), and FY24 FCF of c. 4% vs. BHP/RIO on c. 7/10%.

Uncertainties around Fortescue Future Industries (FFI) diversification and Pilbara decarbonisation and impact on dividend and balance sheet.

Bell Potter and Morgan Stanley have also recently placed sell ratings on Fortescue shares.

Looking at the iron ore price, analysts recently expressed concerns the iron ore price is “not out of the danger zone“.

As my Foolish colleague Tristan reported, Morgan Stanley analysts believe there could be an oversupply of iron ore soon due to China’s steel production “catching up with the reality of sluggish underlying demand”.

China is the world’s largest iron ore importer. The commodity is essential in producing steel. In a research report yesterday, ANZ commodity strategists Daniel Hynes and Soni Kumari predicted China’s steel production growth could “weaken”. They said:

China’s steel production in March rose 6.9% y/y to 95.6mt, taking Q1 total output to 255mt (+4% y/y).

But this strength in production is unlikely to sustain amid lower profit margins and curbs on loss-making steel mills.

Iron ore is currently fetching US$107 a tonne, according to Trading Economics.

On a positive note, Fortescue has recently started production at the Iron Bridge Magnetite Project in Western Australia. The product is now ready for shipping and suitable for steelmaking. Fortescue chairman Andrew Forrest described the news as a “game changer”.

Share price snapshot

The Fortescue share price has climbed nearly 5% in a year and has risen 0.34% in the year to date.

This ASX 200 iron ore share has a market cap of about $63.4 billion based on the latest share price.

The post What’s the forecast for the Fortescue share price this month? appeared first on The Motley Fool Australia.

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More reading

• Analysts name 4 key reasons to buy BHP shares
• 5 things to watch on the ASX 200 on Wednesday
• Can copper be the next big boost for the BHP share price?
• Fortescue’s Twiggy could wipe this ASX 300 share from the bourse. Here are the details
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Monica O’Shea 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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The Westpac Banking Corp (ASX: WBC) dividend will soon be allocated to investors. But, people need to own shares today if they want to receive it.

The ASX bank share recently announced its FY23 half-year result for the six months to 31 March 2023.

Westpac ex-dividend date

As announced earlier this week, the bank’s board decided to declare an interim dividend of 70 cents per share. This represented a year-over-year increase of 15%.

The ex-dividend date is 11 May 2023. Investors need to own shares before this date to be entitled to the upcoming dividend.

This means investors need to own Westpac shares by the end of today’s trading — 10 May 2023. So there are only a few hours left to ensure entitlement to that dividend.

However, many other investors may have the same idea – so don’t be surprised if the Westpac share price drops on 11 May 2023 by a similar amount to the dividend amount.

When will the Westpac dividend be paid?

Westpac has revealed it is going to pay the 70 cents per share dividend on 27 June 2023.

As such, shareholders will only need to wait a month and a half for the money to hit their bank accounts.  

Growth expected to slow

Westpac’s profit has benefited from the higher lending profits. The bank’s FY23 half-year net profit rose 22% to $4 billion.

However, the ASX bank share is expecting credit growth for both housing and business will slow. It’s expecting more stress in the period ahead, particularly for small business. Westpac noted that “intense mortgage competition is expected to negatively impact industry and Westpac’s margins in the next half”.

But, management believes its balance sheet strength will enable it to support customers and navigate any future economic challenges.

The bank said interest rates are closer to their forecast peak, but it’s focused on how long they stay high and what this means for household budgets and discretionary spending.

Westpac share price snapshot

Since the start of the month, the ASX bank share has dropped 4%.

The post Hoping to bag the boosted Westpac dividend? You’ll need to buy shares today appeared first on The Motley Fool Australia.

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More reading

• The Westpac share price could offer a 20% return: Goldman Sachs
• 5 things to watch on the ASX 200 on Tuesday
• Why Lynas, Piedmont Lithium, Westpac, and Woodside shares are rising
• Here’s what you need to know about the 70 cents Westpac dividend
• Westpac share price on watch amid $4bn half-year profit

Motley Fool contributor Tristan Harrison 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 Westpac Banking Corporation. 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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