The Telstra Corporation Ltd (ASX: TLS) share price is down 2.2% or 7 cents today on a day when the benchmark S&P/ ASX200 Index (ASX: XJO) is 0.25% higher, however, there's no need for Telstra shareholders to let their chins drop as the shares went without the rights to an 8 cents per share interim dividend today.
In other words if we adjust for the 8 cents per share value of the dividend payment, the stock is actually up 1 cent (8c-7c=1c) on a glass half full scenario as investors will also collect their dividend payment on March 29.
Some speculators even attempt to 'dividend strip' shares by buying a day or two before the ex-dividend date in order to collect the dividend and then hopefully sell out at a net profit including the dividend.
This is not a sound strategy though as many short-term investors generally tend to sell after a stock goes ex-dividend, while if you don't hold a stock for 45 continuous days after the ex-dividend date you won't be eligible for the franking credits.
If Telstra pays the same 8 cents dividend again on reporting its full year results in August 2019 it will offer a yield of 5.1% based on today's $3.11 share price.
