The Magellan Financial Group Ltd (ASX: MFG) share price is enduring one of its worst days on the ASX since the COVID-19 crash in 2020. However, in this article, we take a look at all there is to know about Magellan's latest dividend.
Clearly, investors were disappointed by Magellan's full-year result. Yet, for long-term shareholders that hold conviction in the company, the details of its latest dividend are important.
Let's dive into the details.
Details worth knowing about
The Magellan share price is painted red today, with shareholders wearing paper losses to the tune of 10%. At the time of writing, the fund manager is the worst performing share in the S&P/ASX 200 Index (ASX: XJO).
For dividend investors, the picture portrayed may not be so bleak. Despite Magellan's 33% fall in profits, the company only shaved 1.7% off its total dividends for the financial year.
Furthermore, the small reduction in dividends to be paid was driven by a fall in the performance fee portion of the payout.
Looking at the summary, interim and final dividends actually increased 8.2% to 199.7 cents per share for the year. Meanwhile, performance fee dividends fell 18.9% to 11.5 cents per share.
If you're hoping to collect the next Magellan dividend, here are the dates that are important to know:
- The ex-dividend date will be 23 August 2021.
This is the cut-off date to become a Magellan shareholder eligible for the next dividend payment. Remember, you must purchase before the ex-dividend date to be eligible.
- The record date will be 24 August 2021.
Shareholders who appear on the company's share register at the end of this date will receive Magellan's dividend.
- The payment date will be 23 September 2021.
This will be the date on which eligible shareholders will receive the dividends in their accounts.
Magellan dividend DRIP established
In a move that long dividend investors will appreciate, Magellan also announced the establishment of a dividend reinvestment plan (DRIP).
According to the company, shareholders will be able to nominate for their dividends to be reinvested at a 1.5% discount to the market price. Chairman Hamish Douglass said:
The establishment of the MFG DRP is a fair and efficient way to retain a modest amount of additional capital whilst at the same time maintaining our dividend policy of paying out 90-95% of the profits from our funds management business.
The poor performance on Tuesday means the Magellan share price is now down more than 27% over the past year. As a result, the company's market capitalisation is now around $8.48 billion.
