The Premier Investments Limited (ASX: PMV) share price is heading south during early Wednesday afternoon. This comes despite the retail conglomerate not releasing any market-sensitive news today.
At the time of writing, Premier Investments shares are down 3.92% to $29.44.
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Why are Premier Investments shares falling today?
Following the company's trading update at its annual general meeting (AGM) last month, investors are eyeing Premier Investments shares as they go ex-dividend today.
Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy Premier Investments shares before this date, the dividend will go to the seller.
Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company's shares after securing the dividend.
What does this mean for Premier Investments shareholders?
For those eligible for Premier Investments final FY21 dividend, shareholders will receive a payment of 46 cents per share on 27 January. The dividend is fully-franked, which means investors can expect to receive tax credits from this.
The dividend reflects an increase of 27.8% when compared against the prior corresponding period (FY20).
In total, the full FY21 dividend came to 80 cents per share, up 14.3%.
Are Premier Investments shares a buy now?
Following the company's AGM address, JPMorgan weighed in on Premier Investments shares.
The broker raised its 12-month price target by 5% to $33.60 for the retail conglomerate. Its analysts believe that there is still more upside in Premier Investments shares regardless of its mixed performance recently.
Based on the current share price, this implies an upside of about 12% for investors.
Premier Investments share price summary
Since the beginning of 2021, Premier Investments shares have gained roughly 25% on the back of positive investor sentiment.
The company's shares reached an all-time high of $32.62 in November, before treading slightly lower thereafter.
On valuation grounds, Premier Investments commands a market capitalisation of around $4.68 billion, with approximately 158.99 million shares outstanding.
