The S&P/ASX 200 Index (ASX: XJO) is having a shaky start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.16% at 7,445 points. But one ASX 200 share is seemingly faring far worse so far today. That would be the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.
ANZ shares are currently down by a nasty 2.22% on Friday’s closing share price at $28.16 a share today. In stark contrast, the other big four ASX banks are all in the green today with Commonwealth Bank of Australia (ASX: CBA) even hitting a new all-time high this morning. So what on earth is going so wrong for ANZ shares today?
ASX bank drops after going ex-dividend
When an ASX share declares a dividend, it must also pick an ex-dividend date for its payout. This date represents the cutoff for new shareholders to receive the said dividend. If an investor brought ANZ shares last week, they are entitled to the bank’s upcoming dividend. But for anyone picking up ANZ shares from today onwards, they will miss out.
That’s why we usually see the dividend paying company’s share price fall in value by a similar amount to this upcoming dividend – it represents the value of the dividend leaving the share price.
So, for ANZ, the bank will be paying out a final dividend of 72 cents per share, fully franked, on 16 December. That payout is a touch higher than the interim dividend of 70 cents that ANZ doled out back in July. But it’s a lot higher (more than double) last year’s final dividend of 35 cents per share.
At Friday’s closing share price, these two dividends gave ANZ shares a yield of 4.94%. After today’s big drop, ANZ now has a trailing yield of 5.04%.
ANZ share price snapshot
ANZ shares have given investors a solid performance in recent months. This bank is up a healthy 24% year to date as well as up 44% over the past 12 months. However, over the past 5 years, ANZ is actually down by an anaemic 0.35% on today’s pricing.