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.
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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.
