If you want to snap up the next Wesfarmers Ltd (ASX: WES) dividend, then you will have to be quick.
That's because the conglomerate's shares will be trading ex-dividend on Wednesday.
When a share trades ex-dividend, it means the rights to an upcoming dividend payment are settled and you won't receive the payout if you invest from this date on. Instead, the rights to the dividend will remain with the seller.
The Wesfarmers dividend
Last week, the Bunnings and Kmart owner released its FY 2023 results and surprised the market with stronger-than-expected numbers.
Wesfarmers posted an 18.2% increase in revenue to $43.5 billion, or 7.4% to $38 billion excluding acquisitions, and a 4.8% lift in net profit after tax to $2.47 billion.
The company's earnings were underpinned by a modest increase in Bunnings earnings, a 52.3% jump in Kmart Group earnings, and a 23.9% lift in WesCEF earnings.
This strong form allowed the Wesfarmers board to declare a fully franked final dividend of $1.03 per share. This was an increase of 3% over FY 2022's final dividend.
Combined with its fully franked interim dividend of 88 cents per share, this took the Wesfarmers FY 2023 dividend to a total of $1.91 per share. This represents an increase of 6.1% year on year.
As I mentioned above, the company's shares are due to trade ex-dividend on Wednesday. This means that you have until the end of today's session to invest if you want to receive the payout.
Failure to be on the Wesfarmers share registry at the close of play on 29 August means you won't be eligible to receive the $1.03 per share final dividend when it is paid on 5 October.
Based on the current Wesfarmers share price, this final dividend equates to a fully franked 2% dividend yield.
