The Treasury Wine (ASX:TWE) dividend is being paid today. Here's the lowdown

Here's all investors need to know about the company's latest payout.

Brooke Cooper

Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.

Published April 1, 2022 12:39 pm AEDT

Owners of Treasury Wine Estates Ltd (ASX: TWE) shares might be about to get a little extra spending (or investing) money in the form of a dividend.

That's right, today is payment day for the winemaker and distributor's interim dividend.

At the time of writing, the Treasury Wine share price is $11.61, 0.26% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) are currently up 0.06% and 0.07% respectively.

So, what should investors know about their latest payment? Here are all the details.

A group of people clink wine glasses in an outdoor, late afternoon setting to celebrate the rising Treasury Wine share price — Image source: Getty Images

Treasury Wine pays out interim dividend

The Treasury Wine interim dividend is being paid today, with many shareholders set to receive a fully franked 15 cent dividend for every share they own in the company.

Taking into account the share price's previous close, today's 15 cent dividend, and the company's latest final dividend – valued at 13 cents per share – the company is currently trading at a trailing dividend yield of 2.4%.

But not all investors will be receiving the company's interim dividend today. Treasury Wine traded ex-dividend on 2 March.

That means only shareholders who invested before that date are eligible to receive the payout. Thus, a share's value generally drops in line with the value of the company's dividend on its ex-dividend date.

The Treasury Wine share price was no exception, plunging 2.74% lower on its ex-dividend date.

The dividend being paid today was first announced in Treasury Wine's half-year results, posted in February.

For the six months ended 31 December, the company's sales revenue, earnings before interest and tax, and net profit after tax (NPAT) fell 10.1%, 6.7%, and 7.5% respectively.

However, it chose to maintain its previous 15 cents interim dividend. That represents a 66% payout ratio of the company's first-half NPAT.

It's also 5 cents lower than the company's highest dividend ever.

Treasury Wine has previously paid two 20 cent dividends. The first was its final dividend of financial year 2019. The second was its interim dividend of financial year 2020.

Despite being in the green today, the Treasury Wine share price is currently 7% lower than it was at the start of 2022.

Though, it has gained 12% since this time last year.

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