Want the latest quarterly dividend from Rural Funds? You'd better hurry

Here's what you need to do to secure the latest dividend from this income stock.

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Man holding out Australian dollar notes, symbolising dividends.

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There aren't too many income payers on the ASX that pay their investors quarterly dividends. In Australia, biannual payouts are the norm, with most investors having to wait six months in between paycheques. But not when it comes to the Rural Funds Group (ASX: RFF) dividend distribution.

This agricultural real estate investment trust (REIT) and farmland landlord is one of the few ASX dividend shares that funds quarterly shareholder payments. These aren't insignificant either. Rural Funds units are currently trading on a dividend distribution yield of over 5%.

But if you wish to receive the latest quarterly dividend from Rural Funds, time is running out.

Rural Funds is scheduled to fork out its latest dividend distribution on 30 April next month. It will be a payment worth 2.93 cents per unit. That's the same payment investors have received every quarter since September 2021 from Rural Funds.

Like most distributions from ASX REITs, this payment will be unfranked.

However, if you are keen to see this payment arrive in your bank account, and you don't already own Rural Funds units, time is running out.

How to secure the latest dividend distribution from Rural Funds Group

That's because Rural Funds is scheduled to trade ex-distribution next week on Wednesday, 27 March.

When an ASX share or REIT trades ex-dividend (or in this case, ex-distribution), it rules out new investors from receiving the payment in question. Put another way, if you own Rural Funds units before 27 March, you will receive this latest payout. But if you buy them on 27 March onwards, you'll miss out this time.

So expect to see a bit of a drop in the Rural Fuds unit price next Wednesday when the markets open. This reflects the inherent loss of value from this dividend distribution.

Distribution-eligible unitholders have until 2 April to choose the optional dividend reinvestment plan (DRP) for Rural Funds. That's if they wish to receive additional Rural Funds units in lieu of the traditional cash payment.

So now you know what you have to do if you wish to bag this latest payout from Rural Funds Group.

At the current Rural Funds unit price of $2.12, this ASX REIT is trading on a trailing dividend distribution yield of 5.53%.

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 positions in and has recommended Rural Funds Group. 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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