This ASX tech share is going ex-dividend today

Shares in this Aussie tech company have slumped in early trade

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ASX tech share COSOL Ltd (ASX: COS) is dropping lower in early trade as the company begins to trade ex-dividend.

This ASX tech share is going ex-dividend today

The ex-dividend date is the last day that investors can purchase a company's shares and still receive the next dividend payment. Normally, the ex-dividend date is one or two days before the record date, which is when shareholders must be on the register to receive the payment.

COSOL is an ASX tech share that specialises in enterprise asset management software. The company is an Aussie small cap with a market capitalisation of just under $100 million.

The COSOL share price has dropped 1.5% at the time of writing to $0.65 per share. That represents a drop of 1 cent per share since yesterday's close.

COSOL announced a 1 cent per share fully franked dividend in its full-year results release in August. That came on the back of a strong earnings year highlighted by a 51% revenue growth and net profit up 39% year on year to $3.99 million.

The ASX tech share has struggled throughout 2021 even as company performance has strengthened. Shares in the Aussie tech group are down 16.7% year to date at the time of writing and trading at a 3.08% dividend yield.

It's no coincidence, however, that the company's shares have dropped by the same amount as its soon-to-be paid dividend. That's how things tend to happen on the ex-dividend date to remove any arbitrage opportunities.

Foolish takeaway

The COSOL share price is falling lower this morning as the ASX tech share trades ex-dividend ahead of its 1 cent per share distribution.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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