The Harvey Norman share price is getting marked down today, here's why

Payday is approaching for shareholders of this retail giant.

| More on:
a man slumps to the floor next to his dishwasher with his head resting on his forearm on the kitchen bench and a tea towel in hand. He is looking despondent and sad.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Harvey Norman Holdings Limited (ASX: HVN) share price is having a tough finish to the week.

At the time of writing, the retail giant's shares are down 4% to $3.90.

Why is the Harvey Norman share price falling?

There are a couple of reasons why this retailer's shares are falling today. The first is the general market weakness which has seen the S&P/ASX 200 index drop into the red.

The other reason is arguably a positive for shareholders in a roundabout way. That's because Harvey Norman's shares are trading ex-dividend on Friday, which means payday is around the corner.

When a share trades ex-dividend, it means the rights to its upcoming dividend are now settled and new buyers won't be eligible to receive this payout.

In light of this, the Harvey Norman share price has fallen to reflect this. After all, you wouldn't want to pay for something that you won't receive.

The Harvey Norman dividend

Last month, Harvey Norman released its FY 2023 results and reported a 3.8% decline in revenue to $9,193 million.

On the bottom line, margin weakness weighed heavily on its earnings, leading to the retailer reporting a 33.5% reduction in profit after tax to $539.5 million.

The company's falling profits unsurprisingly put pressure on its dividends, which came in 33% lower year on year at 25 cents per share. This comprises a fully franked interim dividend of 13 cents per share and a fully franked final dividend of 12 cents per share.

It is the latter 12 cents per share dividend that the company's shares are trading ex-dividend for today.

Eligible shareholders can now look forward to receiving this payout in a month on 13 November. Based on yesterday's Harvey Norman share price, it represents an attractive 3% dividend yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Retail Shares

Harvey Norman share price higher despite falling sales and first strike AGM vote

Almost 82% of shareholders voted against the company remuneration report at the AGM today.

Read more »

Photo of two women shopping.
Retail Shares

ASX retail shares stronger following Black Friday and Cyber Monday sales

Official retail data released today indicates shoppers delayed their spending in October ahead of the sales.

Read more »

A woman sits on sofa pondering a question.

I'm close to buying this beaten-up ASX 300 share next

Here's a company I think is well worth considering.

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Small Cap Shares

Why this ASX small-cap stock is an 'undervalued growth opportunity' for 2024: fundie

The ASX small-cap share has managed to increase profits and earnings despite difficult market conditions.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Retail Shares

Guess which ASX All Ords stock has rocketed 29% in just 3 days

The ASX All Ords stock has enjoyed a big turnaround this week.

Read more »

A woman wearing jewellery shrugs
Retail Shares

Lovisa share price falls despite 17% sales growth, imminent China expansion

Total sales growth and global expansion continue for this retailer.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Retail Shares

Can Wesfarmers shares reach $55 by Christmas?

Are shareholders going to get an early Christmas present?

Read more »

A woman looks at a tablet device while in the aisles of a hardware style store amid stacked boxes on shelves representing Bunnings and the Wesfarmers share price
Retail Shares

What is the 2024 outlook for Wesfarmers shares?

Can the company deliver another strong result?

Read more »