Hoping to bag the next Macquarie dividend, here’s what you need to do

Macquarie shares are about to trade ex-dividend soon.

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Key points

  • Macquarie shares have fallen in recent times despite posting a robust performance for the full year 
  • The company's shares are trading ex-dividend on Monday 
  • Eligible shareholders will receive a final dividend payment of $3.50 on 4 July 

It has been a tough couple of weeks for the Macquarie Group Ltd (ASX: MQG) share price, falling by 15%.

The financial service provider released its full year results on 6 May, reporting double-digit increases across its key metrics. However, this wasn’t enough to stop the bloodshed with its shares falling 7.78% on the day.

Nonetheless, the board opted to increase its upcoming final dividend to eligible investors.

Let’s take a look below at what you need to know in regards to the latest dividend.

What’s the deal with the Macquarie final dividend?

The Macquarie share price has backtracked recently as investor vented out their disappointment following the company’s financial scorecard.

The company is set to pay out $3.50 per share to wrap up the FY22 year ending 31 March 2022. That’s 4.5% higher than last year’s final dividend of $3.35 per share paid to shareholders.

Furthermore, the payout ratio for the latest dividend is at 50% (in line with the target range of 50% – 70% of the company’s profit).

The higher dividend came on the back of the company recording a 56% lift in net profit after tax (NPAT) to $4,706 million. In the previous period (FY21), the group achieved NPAT of $3,015 million.

When can shareholders expect to be paid?

Macquarie will pay the final dividend to eligible shareholders on 4 July.

However, to be eligible you’ll need to own Macquarie shares before the ex-dividend date which falls on Monday 16 May. This means if you want to secure the dividend, you will need to purchase the company’s shares by the close of business today.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

In addition, the dividend is 40% franked which means that investors will receive some tax credits for this.

Currently, Macquarie has a dividend trailing yield of 3.37% and a market capitalisation of roughly $69.87 billion.

Should you invest $1,000 in Macquarie right now?

Before you consider Macquarie, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Macquarie wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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