Two more S&P/ASX 200 Index (ASX: XJO) shares are due to go ex-dividend next week, so if you're not already an owner and you want to pick up these dividend payments, you'll need to act quickly.
The ex-dividend date is the first day that a share trades without the next dividend payment attached.
But beware of this strategy.
It sounds like a quick and easy way to secure some extra dividend income, and yes, it certainly is. But there's a catch (because nothing about investing is that easy!).
The catch is the share price will typically go down on the ex-dividend date. So, don't think you can simply buy the stock, qualify for the payment, and then sell out for a profit in a couple of quick transactions.
The reason the share price typically goes down on the ex-dividend date is that buyers will not be entitled to the next dividend payment, so the stock is less appealing for purchase.
And, of course, every time a company pays dividends, it loses a tonne of money off its balance sheet. So, that reduces the company's cash assets, and therefore, it loses a little of its market value.
For existing shareholders, it's handy to be aware of upcoming ex-dividend dates so you won't be shocked when the share price drops on the day! So this is important information for you, too.
Next week, there are two ASX 200 shares going ex-dividend. Here are the essential details.
ASX 200 shares going ex-dividend next week
Elders Ltd (ASX: ELD)
This ASX 200 agricultural and consumer staples share will pay an interim dividend of 18 cents per share on 26 June. The payment will come with 50% franking.
The ex-dividend date is next Tuesday 28 May.
Elders reported a 19% decline in revenue to $1,341.8 million for the six months ending 31 March compared to the prior corresponding period (pcp).
Statutory net profit after tax (NPAT) cratered 76% to $11.6 million. The underlying return on capital fell from 16.9% to 11.4% and the underlying earnings per share (EPS) tumbled 72% to 9.1 cents per share.
Elders said its weak half-year report was due to four headwinds: challenging seasonal conditions, cautious client sentiment, softening crop input prices, and lower livestock prices.
However, its real estate services business performed well with gross profits increasing 22.5%.
The ASX 200 share is up 12.3% in the year to date. The Elders share price is $8.43 at the time of writing.
Technology One Ltd (ASX: TNE)
The ASX 200 technology share will pay a record interim dividend of 5.1 cents on 14 June. Investors will benefit from 65% franking.
The ex-dividend date is next Thursday 30 May.
Technology One reported a 16% bump in revenue over the pcp to $244.8 million, with total annual recurring revenue (ARR) up 21% to $423.6 million.
The company's profit after tax was up 16% pcp to $48 million, so it decided to bump up its interim dividend by 10% this year.
The ASX 200 share is up 15.6% in the year to date. Technology One shares are currently $17.73 apiece.
