The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is climbing during the afternoon, clawing back from last week's losses. This comes despite the regional bank not releasing any price-sensitive announcements to the ASX today.
At the time of writing, Bendigo Bank shares are up 0.53% to $9.55 apiece.
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Bendigo Bank shares set to go ex-dividend
While the company has been quiet on the news front, investors are buying up Bendigo Bank shares.
This is a stark contrast to the S&P/ASX 200 Index (ASX: XJO) which has fallen 0.88% to 7,088.6 points.
The likely catalyst as to why Bendigo Bank shares are pushing higher is because of the upcoming ex-dividend date.
Investors need to buy Bendigo Bank shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Monday 7 March.
It's worth noting though that 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 Bendigo Bank shareholders?
For those who are eligible for the Bendigo Bank interim dividend, shareholders will receive a payment of 26.5 cents per share on 31 March. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.
Investors who elect for the dividend reinvestment plan (DRP) will see a 1.5% discount applied to the volume-weighted average price. This will be based on the 7 trading days from 10 March to 18 March.
While the details surrounding at what price the DRP will be offered are yet to be determined, the company is expected to make an announcement on this.
The last election date for shareholders to opt-in to the DRP is 9 March.
Bendigo Bank share price summary
Since the beginning of 2022, the Bendigo Bank share price has gained 5% but is down almost 7% for the last 12 months.
The company's shares reached a 52-week low of $8.43 in December, before shooting higher in the following weeks.
Based on today's price, Bendigo Bank commands a market capitalisation of roughly $5.36 billion and has a trailing dividend yield of 5.71%.
