Shares in Bega Cheese Ltd (ASX: BGA) are rocketing higher today following news of the company's latest earnings and dividend.
The dairy giant declared a higher final dividend despite its financial year 2022 profits tumbling 69% year over year.
Right now, the Bega share price is up 11.5% to trade at $4.17.
Let's take a closer look at today's news from the company and the next dividend investors will be receiving from it.
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Bega offers 5.5-cent final dividend
The company revealed it will pay shareholders a 5.5-cent fully franked final dividend for financial year 2022.
That brings the company's full-year payout to 11 cents per share, a 10% increase on that of financial year 2021. It's also on par with the highest ever offered by the company.
It also leaves its stock trading with a 2.6% trailing dividend yield at the time of writing.
The increase in dividends came despite Bega posting just $24.4 million of after-tax profits for the 12 months ended 30 June, representing a 69% year-over-year fall, as my Fool colleague Zach reports.
Its earnings before interest, tax, depreciation, and amortisation (EBTDA) also slipped 19% to $149 million. Though, its revenue rose 45% to $3 billion.
Bega is operating its dividend reinvestment plan (DRP) for its latest payout. Investors interested in receiving new shares in the company rather than a cash dividend have until 2 September to subscribe to the DRP.
The stock will trade ex-dividend from 31 August. Of course, that will likely see the Bega share price fall relatively in line with the value of the company's final dividend. Anyone buying into the company from then on will miss out on the payment.
Finally, the offering will begin to hit investors' accounts on 23 September.
