Why is GrainCorp (ASX:GNC) trading lower today?

It’s a significant day for GrainCorp shareholders as the company turns ex-dividend today. GrainCorp Limited (ASX:GNC) shares are spotlight on the ASX on 6 July. Shares of this food staples retail business have slid by 7.213% to AU$8.49 per share at 12:06 PM AEST.  

Investors are keeping GrainCorp under their radar today as those who did not buy the shares of GrainCorp until yesterday (5 July) won't be eligible for the upcoming dividend. Instead, the dividend will be distributed to the sellers. 

What is pulling down GrainCorp's share price on the ASX today? 

Today is GrainCorp's ex-dividend day which is usually a business day prior to the company's record date. Dividends are primary source of minting money on the stock exchange and investors must have a clear conception about three dates when it comes to trading on the stock exchange and earning dividends. These three dates are- the record date, ex-dividend date, and payment date. 

The record date is the day when a company creates a record of all its shareholders, those who are eligible for earning its next dividend. 

While the ex-dividend date is the day which determines if an investor is eligible to get the dividend or not, usually, investors buying shares of a company within the ex-dividend date are eligible for the dividend. Otherwise, the dividend is paid to the sellers. 

The payment date is the day on which the eligible shareholders receive their part of the dividend from the company. 

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GrainCorp's record is on the next day of its ex-dividend date, i.e., tomorrow (7 July 2022). The dividend payment date is 21 July 2022, on which the eligible shareholders of GrainCorp are expected to receive a dividend worth 24 Australian cents per share. 

The dividend amount includes a fully franked interim dividend worth 12 Australian cents, with an additional special dividend of 12 Australian cents per share. 

This time, GrainCorp's interim dividend portrays a 50% gain in the dividend amount compared to its dividend paid in the prior corresponding period, i.e., 8 Australian cents per share. 

About GrainCorp:

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 An overview of GrainCorp's share price performance on the ASX: 

The past couple of years were very challenging for every business due to COVID-19, Russia Ukraine war, economic inflation, etc. GrainCorp was no exception. However, being in the consumer staples sector, the company could easily combat every challenge and flourish in its business to some extent. 

In last one year, GrainCorp's share price has gained more than 66% on the ASX. On Y-T-D basis, GrainCorp's share price has crawled up more than 1% (as of 12:45 PM AEST on the ASX today, 6 July).