Here’s why the Harvey Norman (ASX:HVN) share price is slipping today

Harvey Norman investors have now locked in their interim dividend.

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An ASX investor relaxes on her couch as the Harvey Norman share price drops due to the shares trading ex-dividend from today.

Image source: Getty Images

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Key points

  • Harvey Norman shares sink 5.08% to $5.42 as the company trades ex-dividend today 
  • Eligible shareholders will receive a dividend payment of 20 cents per share on 2 May
  • The interim dividend is fully franked at a corporate tax rate of 30%

Harvey Norman Holdings Ltd (ASX: HVN) shareholders might be wondering why the share price has fallen 5.08% to $5.42 today.

Not to worry, the shares have simply gone ex-dividend. That means any ASX investor who buys them today or in the future won’t be eligible to receive the upcoming interim dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because some investors sell off their shares after securing the dividend.

Shareholders set eyes on Harvey Norman’s interim dividend

The multinational retailer released its half-year results on 25 February, reporting mixed numbers across key financial metrics.

Nonetheless, the board opted to maintain its interim dividend at the same level as last year.

When can shareholders expect to be paid?

For those eligible for Harvey Norman’s interim dividend, shareholders will receive a payment of 20 cents per share on 2 May.

The dividend is fully franked at a tax rate of 30%, which means investors can expect to receive tax credits.

Harvey Norman share price summary

Since the beginning of 2022, Harvey Norman shares have gained almost 10% on the back of positive investor sentiment.

The S&P/ASX 200 Index (ASX: XJO) is up around 1.4% over the same timeframe.

Harvey Norman shares reached a 52-week low of $4.57 in late January, before zooming upwards in the months following.

Based on today’s price, Harvey Norman commands a market capitalisation of roughly $6.75 billion. It has a trailing dividend yield of 6.46%.

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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