While the wine giant delivered a drop in earnings, investors looked past this and focused on the future. This led to the company’s share price advancing by more than 8% since 16 February.
However, Treasury Wine shares have edged lower today, down 2.10% to $11.415.
Here’s what is dragging the share price down on Wednesday.
Treasury Wine shares trade ex-divided
With the company’s half year results delivered, investors are eyeing Treasury Wine shares as they go ex-dividend today.
According to the half-year report, Treasury Wine produced a softened performance across key metrics.
In summary, net sales declined by 10.1% to $1,267 million over the previous corresponding period.
The company’s Penfolds business felt impacted by reduced shipments to mainland China. However, this was partly offset by the strong growth achieved through global priority markets and channels.
As a result, net sales revenue per case increased by 16% to $95.60.
On Treasury Wine’s bottom line, net profit after tax (NPAT) fell 7.5% to $109.1 million.
The board maintained a fully-franked interim dividend of 15 cents per share.
Management noted that the latest dividend equates to a payout ratio of 66% of NPAT.
The company’s dividend policy is to distribute between 55% to 70% of normalised net profit after tax each year.
It is worth noting that there is a capital management program that has been active since FY18. This returns excess capital efficiently through an on-market share buyback.
When can Treasury Wine shareholders expect payment?
Treasury Wine will pay the interim dividend to eligible shareholders approximately 4 weeks away on 1 April. The dividend is fully-franked, which means investors can expect to receive tax credits from this.
Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 7 March to 18 March.
There is no DRP discount rate and the last election date for shareholders to opt-in is on 4 March.
Based on today’s price, Treasury Wine commands a market capitalisation of roughly $8.25 billion and has a trailing dividend yield of 2.45%.