The Westpac Banking Corp (ASX: WBC) share price has fallen 4% today after the banking giant's shares went ex-dividend.
WBC share price
It's been a rough month for the Westpac Bank share price, falling nearly 11% since the 19th of April.
On May 8th, Westpac announced its half-year profit result for its 2017 financial year, revealing a 3% jump in cash profit. Despite the bank announcing a narrower net interest margin, Westpac declared an interim dividend of 94 cents per share, fully franked.
The dividend was flat year over year, with Westpac haven paid two fully franked 94 cents per share dividends in the past two years (for a total of $1.88 per share each year).
The ex-dividend date is the date which shares in a company no longer include the dividend. Think of them as 'excluding dividends'.
Therefore, Westpac shareholders who bought shares yesterday are entitled to the dividend, which will be paid on July 4th.
Naturally, Westpac shares have fallen today to reflect that the cash reserved for the interim dividend is no longer included in the shares.
Based on analyst forecasts, however, Westpac shares are expected to pay a similar dividend next year, which represents a dividend yield of 6.5% fully franked at today's share prices. However, investors will have to wait a full year to receive that benefit — and a lot can happen in the sharemarket between now and then.
Foolish Takeaway
Westpac, Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) have gone ex-dividend. Fortunately, I think there are many other great dividend shares on the market which represent better value.
