S&P/ASX 200 Index (ASX: XJO) bank shares have long been known (perhaps primarily) for their dividends. And even though Bendigo and Adelaide Bank Ltd (ASX: BEN) is not a member of the exclusive big four, it still lives up to this reputation.
Bendigo Bank reported its full-year earnings for FY22 last month. It announced a 6.9% slide in net profits after tax (NPAT) to $488.1 million at the time. But even so, the final dividend that the bank declared came in at 26.5 cents per share, fully franked. That was consistent with FY21's final dividend of the same amount.
This final dividend will bring Bendigo Bank's total for FY22 to 53 cents per share, slightly down from FY21's total of 54.5 cents per share.
When this dividend hits investors' bank accounts on 29 September, it will give Bendigo and Adelaide Bank shares a healthy dividend yield of 5.94%. That's going off yesterday's closing share price.
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Dividend from Bendigo Bank incoming
So if you're an investor hoping to deposit this latest dividend from Bendigo Bank, what do you need to do?
Well, time is of the essence. This dividend is only arriving later this month. But the Bendigo Bank share price is scheduled to trade ex-dividend for the payment on Monday, 5 September.
This means that you need to own the shares by the end of today's trading session. When a company trades ex-dividend, the value of the dividend leaves the share price. That's because new investors are not entitled to receive it. Thus, its value is no longer counted by the market in the share price. So don't be surprised if we indeed see a bit of a dip in Bendigo and Adelaide Bank shares on Monday.
Bendigo Bank is offering investors both a dividend reinvestment plan (DRP) and a bonus share scheme for this dividend. So if investors wish to receive additional shares in lieu of a cash payment, they will need to make this known by 7 September.
At the last Bendigo and Adelaide Bank share price, this ASX 200 bank share had a market capitalisation of $5.11 billion. That's with a price-to-earnings (P/E) ratio of 9.83. The Bendigo Bank share price remains down 4.1% year to date in 2022 thus far.
