Looking to get your hands on the monster Whitehaven dividend? Read this

Here's what investors need to do to secure Whitehaven's monster dividend.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published August 31, 2022 1:03 pm AEST

After a shaky reception for its FY22 earnings earlier this month, it's been onwards and upwards for the Whitehaven Coal Ltd (ASX: WHC) share price ever since.

Whitehaven shares are today going for $7.97 each at the time of writing, down a hefty 1.24% so far today. But the ASX 200 coal miner is still up a healthy 2.3% or so since its FY22 earnings dropped back on 25 August.

As we covered at the time, this saw Whitehaven report an impressive 216% increase in revenues to $4.92 billion, as well as a massive 1,396% rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $3.06 billion. Net profit after tax (NPAT) was $1.95 billion, well up from FY21's loss of $542.9 million.

This enabled Whitehaven to declare a final dividend of 40 cents per share, fully franked. That's up significantly from the interim dividend of 8 cents per share that the company paid out back in March.

A werewolf monster holds its big dividend of cash in its paws. — Image source: Getty Images

Here's the lowdown on Whitehaven's monster dividend

Due to the loss on the bottom line in FY21, Whitehaven didn't even pay a final dividend last financial year. Back in FY20, the final dividend was 1.5 cents per share, so this latest dividend is no doubt coming as a nice surprise for investors.

So yes, Whitehaven will be doling out its largest ever regular dividend soon. How soon? Well, shareholders will receive the 40 cents per share payment next month, on 16 September.

But, investors will have to act quickly if they don't already own Whitehaven shares (or want to top up) but want this dividend. That's because Whitehaven shares are scheduled to trade ex-dividend tomorrow.

An ex-dividend date cuts off new shareholders from receiving an upcoming dividend. It normally coincides with a commensurate fall in the share price of the company in question. This reflects the value of the dividend leaving the company's shares and going to investors.

After Whitehaven pays out this dividend on 16 September, it will have an annual dividend of 48 cents per share. That will give this ASX 200 coal miner a dividend yield of 6.03% on the current share price.

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