Own Challenger shares? There's cash coming your way today

Some owners of this stock will get a nice paycheque today.

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Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.

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Do you own shares of ASX 200 annuities provider Challenger Ltd (ASX: CGF)? Well, you're in luck, because today, there's some cash coming your way. That cash will come in the form of Challenger's latest dividend, of course.

In the middle of last month, Challenger, like many ASX 200 shares, gave investors a look at its latest earnings report. In this case, it was a fairly pleasing report for shareholders to read through. For the six months ending 31 December 2023, the company reported total assets under management of $117 billion, which represented an 18% increase year on year.

Challenger also delivered a normalised net profit before tax of $290 million, up 16% over the same period in 2022. That helped the company report a statutory profit after tax of $56 million, up 80%.

This all enabled Challenger to declare an interim dividend of 13 cents per share, fully franked, for the half. That was up 8% over the interim dividend of 12 cents per share investors enjoyed this time last year.

So this dividend is obviously the paycheque we're discussing today.

Unfortunately, if you don't already own this stock, the ex-dividend date for the payment (20 February) has already passed us by. But if you owned shares before that ex-dividend date, you are indeed eligible for today's payment.

Today's interim dividend of 8 cents per share compliments the final dividend of 12 cents per share (also fully franked) that investors enjoyed back in September of last year. It takes Challenger's annual dividend total to 25 cents per share.

At Challenger's closing share price (as of yesterday afternoon) of $6.65, this gives the company a dividend yield of 3.76%.

Challenger share price snapshot

This stock has had a moderately positive, if not wildly successful, few months on the share market. The Challenger share price is up 1.84% year to date, as well as up 7.26% over the past 12 months.

At this share price, Challenger has a market capitalisation of $4.59 billion, with a price-to-earnings (P/E) ratio of 27.86.

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

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