The S&P/ASX 200 Index (ASX: XJO) is enjoying a very pleasant day of gains so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 1.24% at 7,137 points. But the Endeavour Group Ltd (ASX: EDV) share price doesn't seem to have gotten an invite to the party. That's despite its primary business of running pubs and bottle shop chains like BWS and Dan Murphy's.
Even though the ASX 200 is enjoying some sunshine, Endeavour shares are presently down by a seemingly nasty 1.82% at $7.03 a share. So what gives?
Well, there's been no major news or announcements out of Endeavour today. But there is still a fairly straightforward explanation for this share price fall Endeavour which investors are enduring today. Today is the day that Endeavour shares trade ex-dividend for the company's upcoming dividend payment.
Back on 21 February, Endeavour reported its half-year earnings for the first half of the 2022 financial year. As we reported at the time, Endeavour delivered a fairly flat set of revenue numbers. However, the company was able to grow net profit after tax (NPAT) by 15.6% to $311 million. These numbers saw the Endeavour share price jump at the time.
Endeavour share price pops its interim dividend cork
But Endeavour's earnings report also naturally included an interim dividend announcement – it's first since it was demerged out of Woolworths Group Ltd (ASX: WOW) last year. Endeavour will be forking out a fully franked interim dividend of 12.5 cents per share. That is a large increase over last year's final (and paradoxically, first ever) dividend of 7 cents per share.
The company's shares trade ex-dividend for this payment today, which means that any new investors from today will not receive said payment. That's probably why the Endeavour share price is falling today. But investors will have to wait until 28 March to receive the cash and franking credits.
Now that Endeavour has paid out two dividends in the past 12 months, we can now give its shares a full and accurate dividend yield. At the current share price of $7.03, and taking into account an annual payment of 19.5 cents per share, Endeavour has a dividend yield of 2.77%.
Since its first day of trading last June, the Endeavour share price has given investors a return of approximately 15.25%. At the current Endeavour share price, the company has a market capitalisation of $12.57 billion.
