AUS
NZ
UK
CA
USA
IND
Highlights
- ANZ shares fell 4% to AU$31.29 as the stock went ex-dividend.
- ANZ shareholders remain up 27% over the last 12 months despite the dip.
- Final dividend of 83 cents per share, payable on 17 December offers a 5.1% annual yield.
On Wednesday, shares of ANZ Group Holdings Ltd (ASX:ANZ) experienced a notable drop, slipping 4% in morning trade to AU$31.29. The decline follows a period of strong performance for the banking giant, with shares up 27% over the past year. An AU$10,000 investment in ANZ shares 12 months ago would now be worth approximately AU$12,700, excluding dividends. So, what’s behind today’s pullback?
Rather than any negative news or downgrade, the dip comes as ANZ shares go ex-dividend, meaning new shareholders are no longer eligible for the company’s latest dividend payout. When a stock goes ex-dividend, its price typically drops to reflect the dividend amount, as the right to the payout transfers from the stockholder to the seller. Investors who buy shares after this date will miss out on the upcoming dividend payout, which is instead directed to the seller’s account on payday.
ANZ’s ex-dividend date aligns with its recent FY 2024 results, where the bank reported a statutory net profit after tax of AU$6.5 billion, an 8% decline from the prior period. In response, the ANZ board declared a final dividend of 83 cents per share, partially franked at 70%. This increased the bank’s total dividend payout for the year to AU$1.66 per share, offering investors a 5.1% annual dividend yield based on Tuesday’s closing price of AU$32.57.
Despite today’s decline of AU$1.28 per share—slightly more than the final dividend value—it’s likely that some investors are taking advantage of the price movement to lock in profits after a solid year of gains.
For shareholders who held their shares prior to the ex-dividend date, ANZ’s 83-cent dividend payment is set for December 17, providing a timely boost for holiday spending.
