Why is the Washington H Soul Pattinson share price having such a lousy end to the week?

What's gone wrong with the Soul Patts share price this Friday?

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 November 18, 2022 11:36 am AEDT

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.

A woman is left blank after being asked a question, she doesn't know the answer. — Image source: Getty Images

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.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.