The Woolworths Group Ltd (ASX: WOW) share price dropped 1% to $36.38 today, but there’s no need for shareholders to worry as the supermarkets giant went without the rights to its 57 cents per share dividend yesterday. Commonly when a blue-chip shares favoured by investors for its dividend payments the share price will lose roughly the value of the dividend payment on the day it goes ex-dividend.
For example yesterday Woolies shares lost 53 cents which is almost exactly in line with the dividend amount. Some traders will even try to dividend strip share by buying them just before the ex-dividend date to collect the dividend before selling them at a net profit. This is dangerous game to play though as often the shares will fall more than the dividend amount and you must hold the shares for 45 days to qualify for the franking credit. That’s before you account for the brokerage costs to buy and sell.
You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.
So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!
Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...
While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...
Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.
You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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 Scott Phillips.