In morning trade the Australia and New Zealand Banking Group (ASX: ANZ) share price has been amongst the worst performers on the benchmark S&P/ASX 200 index.
At the time of writing the banking giant's shares are down 4% to $26.38.
Why is the ANZ share price sinking lower today?
Although the banking sector has come under pressure today following the release of a disappointing quarterly update from Commonwealth Bank of Australia (ASX: CBA), the majority of ANZ's decline is related to the bank's latest dividend.
This morning ANZ's shares are trading ex-dividend, which is a fancy way of saying that they are trading without the rights to its next dividend.
When this happens, potential buyers of its shares will adjust the buy price to reflect the fact that they will not be entitled to this dividend.
What dividend is ANZ paying?
At the start of the month ANZ released its first half results and declared a fully franked interim dividend of 80 cents per share.
This dividend will be paid to eligible shareholders (those that owned shares when the market closed on Friday) in seven weeks on July 1.
It isn't just ANZ which is trading ex-dividend this morning. The Macquarie Group Ltd (ASX: MQG) share price is also trading 4% lower this morning for the same reason.
When the investment bank released its full year results at the start of the month, it declared a $3.60 per share partially franked final dividend.
What about the other banks?
Later this week two more big four banks will trade ex-dividend for their latest payouts.
National Australia Bank Ltd (ASX: NAB) shares will trade ex-dividend tomorrow for its fully franked 83 cents per share interim dividend and Westpac Banking Corp (ASX: WBC) shares are scheduled to go ex-dividend on Thursday for its fully franked interim 94 cents per share.
