The Bank of Queensland Ltd (ASX: BOQ) share price is among the worst performers on the ASX 200 index on Thursday.
In morning trade, the regional bank's shares are down 5% to a new 52-week low of $5.21.
Why is the Bank of Queensland share price sinking today?
While the regional bank's shares have been having a difficult time of late due to its poor operational performance, today's decline is for a different reason.
In fact, today's decline is arguably a positive for its long-suffering shareholders. That's because it signifies that the bank's next dividend payment is on the horizon.
This morning, the Bank of Queensland share price traded ex-dividend for the bank's final dividend of FY 2023.
When a share trades ex-dividend, it tends to drop in line with the value of the dividend. That's because new buyers won't be entitled to receive this dividend when it is paid.
What dividend is being paid?
Earlier this month, the company released its FY 2023 results and reported a 5% increase in total income but an 8% reduction in cash earnings after tax to $450 million.
In response to its falling earnings, the Bank of Queensland board trimmed its fully franked final dividend by 4.2% to 21 cents per share. This brought its FY 2023 dividend to 41 cents per share, which represents a 10.9% reduction year on year.
It is the final dividend of 21 cents per share that the bank's shares are trading ex-dividend for today.
Based on where the Bank of Queensland share price was trading yesterday, it equates to a very generous 3.8% dividend yield.
Eligible shareholders can now look forward to receiving this fully franked payout next month on 16 November.
