Hoping to bag the next Graincorp dividend? Read this

The ASX 200 company’s shares are going ex-dividend this week. Here’s the granular detail…

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Key points

  • Graincorp is due to trade ex-dividend on Wednesday
  • The ASX agricultural share has gained 16% in 2022 so far and around 89% in a year
  • Its investors can look forward to a total dividend payment of 24 cents a share, fully franked, later this month

Hoping to bag the next dividend payment from Graincorp Ltd (ASX: GNC) shares? Well, you’ve come to the right place. Grancorp shares are having a steady start to the trading week so far this Monday. The ASX 200 agricultural company is marginally lower at $9.49 a share at the time of writing, down 0.52%.

Still, this puts Graincorp shares at a gain of 16% for 2022 so far and an even more impressive rise of around 89% over the past 12 months.

But Graincorp shares are probably going to go backwards this week – on Wednesday to be precise. That’s when Grancorp is scheduled to trade ex-dividend.

When a company announces a dividend, it must also announce the date when new shareholders have to own the shares by to receive the payout. This date is known as the ex-dividend date. So even though Graincorp won’t be paying out its next dividend until 21 July, any investor who wishes to receive it must own Grancorp shares by this Wednesday.

But because any new shareholders who buy Graincorp shares after Wednesday won’t be eligible to receive the payment, the company’s shares will likely drop in value upon market open that day to reflect this. This is normally what happens when a share trades ex-dividend. So expect a fall in the Graincorp share price this Wednesday.

What can investors expect from the Graincorp dividend?

So what is Grancorp’s latest dividend worth? Well, this latest dividend will come in two parts. The first is the ordinary interim dividend. This payment will be worth 12 cents per share and will come fully franked.  This represents a healthy rise from Graincorp’s last interim dividend which came to eight cents per share.

The second is a special dividend, also worth 12 cents a share and fully franked. The special dividend was announced back in May and reflects the company’s bumper 382% rise in net profits after tax (NPAT) to $246 million over the six months to 31 March 2022.

So investors can look forward to a total dividend payment worth 24 cents per share, fully franked, on 21 July.

Since Graincorp’s last payment was the final dividend of 10 cents per share that investors received back in December, the company will have a trailing yield of 2.27%, not including the special dividend. It will be 3.51% including the special dividend on 21 July when these dividends hit shareholders’ bank accounts.

Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. 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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