The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is having a tough time on Monday.
In afternoon trade, the regional bank's shares are down 3% to $9.23.
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Why is the Bendigo Bank share price under pressure?
The good news is that there's nothing to be concerned about with this decline. It hasn't been driven by bad news or a broker downgrade.
In fact, this decline could be considered as good news for shareholders.
That's because it has been caused by the regional bank's shares going ex-dividend this morning for an upcoming dividend. Which means payday is approaching!
When a share trades ex-dividend, it means that the rights to the impending dividend payment have been settled. As a result, any investors that are investing today will get the shares but not the dividend.
That dividend will instead land in the seller's bank account on payday, even though they no longer own those shares. In light of this, a company's shares will tend to drop in line with the value of the dividend to reflect this.
The Bendigo Bank dividend
Last month, the bank released its FY 2023 results and reported a 14% increase in total income to $1,932.8 million and a 15.3% lift in cash earnings to $576.9 million.
This allowed the bank to declare a fully franked final dividend of 32 cents per share, which took its full-year dividend to 61 cents per share. This was an increase of 15.1% year on year.
Based on the Bendigo Bank share price at Friday's close, its final dividend equates to a 3.3% dividend yield.
Eligible shareholders can now look forward to receiving this in their bank accounts at the end of the month on 29 September.
