The market may be pushing higher on Wednesday but the same cannot be said for two of Australia's favourite blue chip shares.
In afternoon trade the Coles Group Ltd (ASX: COL) share price is down 1% to $13.43 and the Telstra Corporation Ltd (ASX: TLS) share price is down 2.5% to $3.64.
Why are Coles and Telstra shares tumbling lower?
The good news is that these declines have nothing to do with business conditions or broker notes, but everything to do with their latest dividends.
The shares of both Coles and Telstra traded ex-dividend this morning for their final dividends.
When a share trades ex-dividend it means they are trading without the rights to an upcoming dividend payment. And because buyers aren't entitled to the next dividend payment, the share price will usually drop in value by the amount of the expected dividend.
Coles dividend.
Coles' shares traded ex-dividend for the supermarket giant's fully franked final and special dividends, which totalled 35.5 cents per share.
This comprised a final dividend of 24 cents per share and a special dividend of 11.5 cents per share. The latter covers the period from November 28 2018, which was the effective date of the demerger from former parent company Wesfarmers Ltd (ASX: WES).
Eligible shareholders can now look forward to being paid these dividends on September 26.
Telstra dividend.
Telstra's shares have traded ex-dividend this morning for the telco giant's fully franked final dividend of 8 cents per share. This comprised a final ordinary dividend of 5 cents per share and a special dividend of 3 cents per share.
Eligible Telstra shareholders will also be paid these latest dividends on September 26.
Next shares to go ex-dividend.
Also going ex-dividend in the near future are REA Group Limited (ASX: REA) shares for its 63 cents per share final dividend on Thursday and Wesfarmers for its 78 cents per share final dividend on Friday,
