The S&P/ASX 200 Index (ASX: XJO) and the banking sector may be pushing higher on Monday, but the same cannot be said for the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.
In afternoon trade the banking giant's shares are down almost 2.5% to $19.14.
Why is the ANZ share price underperforming today?
The underperformance of the ANZ share price on Monday has little to do with its business operations and a lot to do with its dividend.
This is because this morning the bank's shares traded ex-dividend for the final dividend it declared with its full year results at the end of last month.
When a share trades ex-dividend, it means that it is now without the rights to a future dividend payment. Essentially, the seller of the share will receive the dividend and the buyer will get nothing.
In light of this, a share price will generally decline in line with its dividend to reflect this.
What is ANZ's dividend?
Last month ANZ declared a fully franked final dividend of 35 cents per share, down from 80 cents per share a year earlier.
This dividend will now be paid to eligible shareholders in a touch over five weeks on December 16.
What about the other banks?
ANZ shares aren't the only ones to trade ex-dividend this month.
Next in line to go ex-dividend is the Westpac Banking Corp (ASX: WBC) share price on Wednesday for its 31 cents per share fully franked dividend. This will then be paid to eligible Westpac shareholders on 18 December.
After which, a day later National Australia Bank Ltd (ASX: NAB) shares will trade without the rights to its final fully franked dividend of 30 cents per share. This dividend will be paid to eligible NAB shareholders on 10 December.
