Hoping to bag the Harvey Norman (ASX:HVN) dividend? Here's what you need to do this week

Time is running out to lock in Harvey Norman's latest dividend.

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Key points
  • Harvey Norman shares have rocketed in recent times as positive investor sentiment picks up 
  • The company's shares are set to go ex-dividend on Thursday 
  • Harvey Norman will pay an interim dividend of 20 cents on 2 May to eligible shareholders 

The Harvey Norman Holdings Limited (ASX: HVN) share price has performed well on the S&P/ASX 200 Index (ASX: XJO).

This month, the multi-national retailer's shares accelerated to a 6-month high of $5.62 following the company's half year results.

At Friday's market close, Harvey Norman shares finished at $5.58, up 2.20%.

A husband and wife dance with their young daughter in their lounge room.

Image source: Getty Images

Why are investors paying attention to Harvey Norman shares?

It appears investors are buying up Harvey Norman shares after a positive broker note, as well as trading ex-dividend this week.

Investors need to buy Harvey Norman shares before market close on Wednesday to be eligible for the interim dividend. The ex-dividend date is on Thursday 31 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.

In addition, the team at Goldman Sachs believes Harvey Norman shares are trading at attractive levels.

Its analysts retained a 12-month price target of $6 per share, which represents an upside of 6.7%

When can Harvey Norman shareholders expect payment?

For those who are eligible for the Harvey Norman dividend, shareholders will receive a payment of 20 cents per share on 2 May. This is the same amount the company paid to shareholders in the previous corresponding period (H1 FY21).

The $249.20 million interim dividend is fully franked which means shareholders will receive tax credits from this.

Harvey Norman share price snapshot

Since the beginning of 2022, the Harvey Norman share price has shot up around 13% in value. In comparison, the benchmark index is down 0.5% over the same timeframe.

Harvey Norman commands a market capitalisation of roughly $6.95 billion and has a trailing dividend yield of 6.27%.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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