The Sonic Healthcare Ltd (ASX: SHL) share price is in the red — and has been for most of today's trading — after the S&P/ASX 200 Index (ASX: XJO) healthcare share went ex-dividend.
Last month was reporting season, when investors learned how their companies had performed in the period to December 2022.
Some businesses also declared their latest dividends.
Sonic Healthcare was one of the businesses that announced its dividend, with another increase for investors.
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Sonic Healthcare shares goes ex-dividend
The board of the ASX 200 share decided to declare an interim dividend of 42 cents per share. That represents an increase of 5% compared to the prior corresponding period.
Sonic Healthcare shares went ex-dividend today, meaning that investors who buy shares today aren't entitled to that 42 cents dividend per share. This will be paid on 22 March 2023.
Investors who were too late to buy shares will need to wait another six months for the next half-year dividend. However, the business has a "progressive dividend policy", so the next dividend may also be higher than what was paid in the prior corresponding period of the previous financial year.
How was the ASX 200 share's dividend funded?
The ASX 200 share reported that in the first six months of the 2023 financial year, its total revenue was $4.08 billion and earnings per share (EPS) was 80.9 cents. Those numbers were up 22% and 52% respectively, compared to the pre-COVID result of the FY20 first half.
Those numbers included its base business revenue of $3.7 billion, which was up 9% year over year. The base business margins were "in line" with pre-pandemic levels. It's also benefiting from catch-up testing which is now going up after the pandemic and its extensive COVID testing regimes.
The business is pursuing new contracts and potential acquisitions which could help it grow further from here.
Sonic Healthcare share price snapshot
Since the beginning of 2023, the ASX 200 healthcare share has risen around 10%.
