ARB Corporation Limited (ASX: ARB) shareholders might be wondering why the company's share price is currently down 4.35% to $39.62 today.
The 4×4 accessories company released its half-year results on 22 February, reporting double-digit growth across key financial metrics.
In turn, the board opted to ramp up its upcoming interim dividend to eligible investors.
Let's take a look below at why the ARB share price is edging lower during midday trade.
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Shareholders set eyes on ARB's interim dividend
The ARB share price is in reverse following the company's shares trading ex-dividend today.
Typically, one business day before the record date, the ex-dividend date is when investors must have purchased the company's shares. If the investor does not buy ARB shares before this date, the dividend will go to the seller.
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 the S&P/ASX 200 Index (ASX: XJO) is also heading south today, down by 0.46% to 7,456 points. It appears investors are heading for the exits after a poor performance on Wall Street overnight.
When can shareholders expect to be paid?
For those eligible for ARB's interim dividend, shareholders will receive a payment of 39 cents per share on 22 April. The dividend is fully franked.
Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.
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 April to 13 April.
The DRP discount rate is set at 2%, and the last election date for shareholders to opt-in is 13 April.
ARB share price summary
Since the beginning of 2022, ARB shares have lost 24%. In comparison, the benchmark index is relatively flat over the same time frame.
The ARB share price reached an all-time high of $55.00 on 4 January, before backtracking amid inflationary movements and geopolitical tensions.
Based on today's price, ARB commands a market capitalisation of roughly $3.24 billion and has a trailing dividend yield of 1.71%.
