You may be curious as to why the WAM Capital Limited (ASX: WAM) share price is heading south today.
During early morning trade, the investment company's shares are down 4.79% to $1.99.
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Shareholders lock in the WAM interim dividend
While the S&P/ASX 200 Index (ASX: XJO) is also treading lower today, the WAM share price is trading ex-dividend.
This follows the release of the company's half-year result in February, reporting growth across key financial metrics.
Despite registering a robust scorecard, the board opted to maintain its upcoming interim dividend over the prior corresponding period.
Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor buys WAM shares after this date, the dividend will go to the seller.
When can shareholders expect to be paid?
For those eligible for WAM's interim dividend, shareholders will receive a payment of 7.75 cents per share on 17 June. The dividend is fully franked at a corporate tax rate of 30%, which means investors will receive tax credits.
In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead, based on a 10-day volume-weighted average price.
There is a 2.5% DRP discount rate and the last election date for shareholders to opt in is 9 June.
WAM share price summary
Since the beginning of 2022, WAM shares have lost 10% on the back of weakened investor sentiment.
For context, the ASX 200 benchmark index is down around 3% over the same timeframe.
It's worth noting that the company's shares reached a 52-week low of $1.98 today.
Based on today's price, WAM commands a market capitalisation of roughly $2.26 billion and has a trailing dividend yield of 7.67%.
