The Elders Ltd (ASX: ELD) share price stormed higher following the company's half year results yesterday.
At Monday's market close, the agribusiness company's shares finished up 8.91% to $14.92.
For context, the S&P/ASX 200 Index (ASX: XJO) ended slightly in the green, up 0.05% to 7,148.9 points.
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A quick breakdown on Elders' half year result
In the half year report for the 2022 financial year, Elders reported double-digit growth across key financial metrics.
In summary, sales revenue soared 38% to $1,514.8 million over the previous corresponding period.
Management stated the robust performance of its rural products business was driven by pent-up demand for fertiliser and crop protection products. This came off the back of favourable seasonal conditions across key cropping regions.
On the bottom line, Elders recorded a net profit after tax (NPAT) of $91.2 million. This represents an increase of 34% from this time last year.
Based on the company's profit above, the Elders board declared a 30% franked interim dividend of 28 cents per share. This reflects a 40% jump from the 20 cents announced in the prior comparable period.
Notably, this is the highest ever dividend that the company is set to pay to shareholders.
Management indicated that the latest dividend is consistent with its stated target dividend payout ratio of between 40% and 60%.
When can shareholders expect payment?
The Elders interim dividend will be paid to eligible shareholders roughly 3 and a half weeks away on 17 June.
However, to be eligible, you'll need to own Elders shares before the ex-dividend date which falls on 30 May. This means if you want to secure the dividend, you will need to purchase Elders shares this Friday at the latest.
In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 31 May to 9 June.
There is no DRP discount rate and the last election date for shareholders to opt-in is on 2 June.
