The conclusion of the February reporting season saw just under 79% of ASX 200 shares issue a dividend, according to CommSec. This is down from the long-term average of 86% but an improvement from the 69% seen back in August 2020.
Investors who purchase a company’s shares before the ex-dividend date are entitled to the next dividend payment. If its shares are purchased on or after that date, the previous owner of those shares will receive the dividend instead. A company’s share price typically falls on the ex-dividend date, to account for the dividend paid.
With more ASX 200 shares paying a dividend, here are the ones going ex-dividend this week.
Carsales.com Ltd (ASX: CAR)
Carsales delivered robust 1H21 earnings with an 18% increase in adjusted net profit after tax to $74 million. Its strong cash flow generation and balance sheet supported a 14% increase in interim dividends to 25 cents per share.
The company will be going ex-dividend on Tuesday 23 March. The issued 25 cents per share interim dividend represents a yield of 1.37% based on its closing price on Friday.
The Carsales share price is down 10% year to date. At their current $18.20 level, Carsales shares have slumped to an 8-month low. The recent weakness in the Carsales share price is in-line with the broader weakness and selloff for tech shares.
Cochlear Limited (ASX: COH)
Cochlear’s earnings recovery journey has been slow, with only Q2 FY21 showing positive prior corresponding growth. In the company’s 1H21 results, sales revenue declined 4% to $742.9 million, with the first quarter down 8% and the second quarter up 7%.
The improved tradition conditions and cash flow generation has seen a return of dividends for Cochlear. Its shares will be going ex-dividend on Thursday 25 March for an interim dividend of $1.150. Despite maintaining a dividend payout ratio of 60% of underlying net profit, this interim dividend only represents a yield of 0.50% based on its Friday closing price of $202.94.
Healius Ltd (ASX: HLS)
Healius provides facilities and support services to the healthcare sector with a focus on pathology, imaging and day hospitals. The company has seen a strong improvement in 1H21 earnings with underlying revenues up 16.7% to $953.5 million and net profit after tax up 190% to $75.6 million.
The company announced a fully franked dividend of 6.5 cents per share in line with its 50% to 70% payout ratio. Healius shares will go ex-dividend on Thursday 25 March.
Seven Group Holdings Ltd (ASX: SVW)
Seven owns a portfolio of industrial services, property, media and other investors. It delivered a flat 1H21 update with the group’s revenue up 4% to $2,357 million while net profit after tax was 3.1% lower to $246.7 million.
The company edged its interim dividend 10% higher to 23 cents per share fully franked. This represents a yield of ~1% based on its Friday close of $22.14. Seven shares also go ex-dividend on Thursday 25 March.
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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended carsales.com Limited and Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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