The blue-chip nature of ASX 200 shares means that small to mid-cap shares are often overlooked for dividends.
These ASX shares will be going ex-dividend this week. This means that investors who own or purchase the company’s shares before the ex-dividend date will receive its next dividend payment. The ex-dividend date will typically see the company’s share price open weaker to reflect the dividend paid. The larger the dividend paid, the greater the share generally falls on the ex-dividend date.
Briscoe Group Ltd (ASX: BGP)
Briscoe is a New Zealand based sporting and homeware retailer. The company announced solid earnings growth for the full year ended 31 January 2021 with revenue up 7.5% to NZ$701 million while net profit after tax increased 17% to $73 million. Briscoe will be going ex-dividend on Tuesday 23 March, for 13.5 cents per share. At its last closing price on Friday of $4.05, this represents a yield of 3.33%.
Cash Converters International Ltd (ASX: CCV)
Cash Converters will be going ex-dividend on Wednesday 24 March, paying a distribution of 1 cent per share. This represents a yield of approximately 4%.
The embattled second-hand retailer and financial services provider has struggled against more tech-enabled competitors. The company’s 1H21 report saw a 31% decline in revenues to $98.4 million while operating net profit after tax declined 28% to $7.7 million.
Lindsay Australia Ltd (ASX: LAU)
Lindsay is an integrated transport, logistics and rural supply company with an extensive east coast network. The Lindsay share price has been in a steady decline since 2015, losing more than 25% in value. From an earnings perspective, the company has had relatively stable cash flows and dividends. Its most recent 1H21 report highlighted a 12.1% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $26.1 million, reflecting continued cost controls and improving operational efficiency.
The company will be going ex-dividend on Thursday 25 March for an interim fully franked dividend of 1.2 cents. This represents a yield of approximately ~3.2%.
Vita Group Limited (ASX: VTG)
Vita Group shares took a 30% dive on 11 February when Telstra Ltd (ASX: TLS) announced that it would transition its Telstra branded retail store network to a full corporate ownership model. This means that the current dealer agreement with Telstra will end by 30 June 2025.
A significant proportion of Vita’s earnings are derived from its retail Telstra stores. In its 1H21 results, $307.8 million of its $323.7 million revenue came from information and communication technology (ICT) channels. Vita Group CEO Maxine Horne said the company “has been investing in the very attractive category of skin health and wellness for some time, thus creating a new growth opportunity for the group”.
Vita Group will be going ex-dividend on Thursday 25 March, for an interim dividend of 5.6 cents. Its recent share price decline to 95 cents has propped up the yield to approximately 6%.
Service Stream Ltd (ASX: SSM)
Service Stream provides end-to-end life-cycle services such as design, construction and maintenance to utility and telecommunication asset owners, operators and regulators in Australia.
A reduction in telecommunication works in 1H21 resulted in a 17.7% decline in revenues to $409.9 million. Service Stream expects subdued trading conditions and COVID-19 related impacts to continue into the second half, with results approximately in-line with the first half.
The market has not been impressed by historically weaker earnings from Service Stream. The Service Stream share price is down more than 30% year-to-date, sitting at around 3-year lows. The company will be going ex-dividend on Thursday 25 March for an interim dividend of 2.5 cents.