It's looking like the S&P/ASX 200 Index (ASX: XJO) is set for a pleasant end to the trading week so far this Friday. At the time of writing, the ASX 200 has gained a robust 0.27% up to 7,154 points. But the same can't be said for the Washington H. Soul Pattinson and Co Ltd (ASX: SOL) share price.
Soul Patts shares closed at $28.61 each yesterday afternoon. But the ASX 200 investing conglomerate opened at $28.17 this morning. It is currently going for just $27.59, a seemingly nasty drop of 3.57% from yesterday's close.
So why are investors suddenly turning on Soul Patts shares today?
Well, the answer is that they are not. Or at least not as much as it might seem.
Soul Patts shares are past their ex-dividend date
See, today is the day that Soul Patts has traded ex-dividend for its upcoming shareholder payment.
When Soul Patts revealed its full-year results for FY 2022 back in September, the company declared a final dividend of 43 cents per share, fully franked. It also announced a one-off special dividend of 15 cents per share, also fully franked.
The final dividend is a healthy increase on last year's equivalent payment of 36 cents per share. Along with the May interim dividend of 29 cents per share, it continues a 22-year streak of Soul Patts increasing its dividend every single year. That's a record unmatched on the ASX 200 Index.
But with a dividend comes an ex-dividend date, and that date is today. So from now, any new investor in Soul Patts shares will not be eligible for either the final dividend or the special dividend. As such, the value of these payments has left the Soul Patts share price. As is typical with an ex-dividend date.
For all of those investors who held Soul Patts shares as of yesterday's close, the final and special dividends are scheduled to be paid out on 12 December.
On yesterday's closing share price, this latest final dividend gives Washington H. Soul Pattinson shares an annual dividend yield of 2.6%. That's 3.14% if we include the value of the special dividend.
