Westpac Banking Corp trades ex-dividend, yields 3%

The Westpac Banking Corp (ASX:WBC) share price has fallen 4% today after shares went ex-dividend.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Westpac Banking Corp (ASX: WBC) share price has fallen 4% today after the banking giant's shares went ex-dividend.

WBC share price

WBC share price
Source: Google Finance

It's been a rough month for the Westpac Bank share price, falling nearly 11% since the 19th of April.

On May 8th, Westpac announced its half-year profit result for its 2017 financial year, revealing a 3% jump in cash profit. Despite the bank announcing a narrower net interest margin, Westpac declared an interim dividend of 94 cents per share, fully franked.

The dividend was flat year over year, with Westpac haven paid two fully franked 94 cents per share dividends in the past two years (for a total of $1.88 per share each year).

The ex-dividend date is the date which shares in a company no longer include the dividend. Think of them as 'excluding dividends'.

Therefore, Westpac shareholders who bought shares yesterday are entitled to the dividend, which will be paid on July 4th.

Naturally, Westpac shares have fallen today to reflect that the cash reserved for the interim dividend is no longer included in the shares.

Based on analyst forecasts, however, Westpac shares are expected to pay a similar dividend next year, which represents a dividend yield of 6.5% fully franked at today's share prices. However, investors will have to wait a full year to receive that benefit — and a lot can happen in the sharemarket between now and then.

Foolish Takeaway

Westpac, Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) have gone ex-dividend. Fortunately, I think there are many other great dividend shares on the market which represent better value.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »