Waiting for Macquarie’s next dividend? Here’s what you should know

May 13, 2022 09:12 PM AEST | By Aayush

Waiting for Macquarie’s next dividend? Here’s what you should know — Image source: ShutterstockProfessional, Shutterstock.com

Highlights

Macquarie Group has declared a final dividend of AU$3.5 per share for FY22.

The record date for the final ordinary dividend is 17 May 2022.

The dividend yield of MQG shares stands at a lucrative 4.15%.

Macquarie Group Limited (ASX:MQG), one of the prestigious financial groups of Australia, has recently declared the final dividend payout for the financial year 2022. On 6 May 2022, the group came out with its FY22 earnings, declaring a net profit of AU$4.7 billion, noticeably higher than FY21 profit of AU$3.01 billion.

The increased profit figure allowed the group to pay a final dividend of AU$3.5 per ordinary share. This results in a total ordinary dividend for FY22 of AU6.22 per share, up from AU$4.70 per share in the prior year, a 32% jump.

The eligible shareholders would be paid the dividend on 4 July 2022 and the record date for the same has been set as 17 May 2022. The final dividend would also be partially franked with 40% of the total amount. That means, AU$1.4 per share out of AU$3.5 would be the franked amount and the remaining AU$2.1 per share would attract tax liability on shareholders. Talking about the bank’s past dividend history, Macquarie paid AU$6.02 per share in CY21 and AU$3.15 per share in CY20.

Macquarie Group has regularly been paying dividends to shareholders and this is one of the features that investors find attractive. The bank’s payout ratio for FY22 stood at 51.8%, a little less than the five-year historical average of 60.45%.

MQG shares have been trading on a lacklustre note this year, disappointing investors with its negative return of 13.57% to the last closing price of AU$182.66 on 13 May 2022. However, a fall in the share price has resulted in a bumped-up dividend yield for the stock, which currently stands at a lucrative 4.15%.

Comparing it with other major banks – Commonwealth Bank of Australia (ASX:CBA) is trading at a yield of 3.67%, while National Australia Bank (ASX:NAB) is quoting at a dividend yield of 4.54%.

Bottom Line

Dividend investing could be a good strategy for long term as it provides investors with a regular source of income, which is over and above the capital appreciation on shareholdings. However, dividends should not be the sole criterion for picking an investment opportunity and other factors such as profitability, revenue growth, market share, etc. should also be considered.

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