In early trade the Telstra Corporation Ltd (ASX: TLS) share price has been amongst the worst performers on the benchmark ASX 200.
At the time of writing the telco giant's shares are down 3% to $3.08.
Why is the Telstra share price tumbling lower on Wednesday?
Fortunately for Telstra shareholders this decline has nothing to do with its business performance or that of its rivals, but everything to do with its shares trading ex-dividend this morning.
When shares trade ex-dividend it means that they no longer hold the rights to the next dividend. As a result, new buyers of its shares will take it out of the equation and pay the last close price less the value of the dividend, all else equal.
What now?
Eligible shareholders can now look forward to being paid Telstra's fully franked interim dividend of 8 cents per share on March 29.
After which, according to Goldman Sachs, they should expect to receive a further 8 cents per share final dividend in around six months.
This will bring Telstra's full year dividend to 16 cents per share, down from 22 cents per share in FY 2018.
Other shares trading ex-dividend.
Telstra isn't the only share on the Australian share market trading ex-dividend this morning. Others include:
- Embattled financial services company AMP Limited (ASX: AMP) is trading without the rights to its 4 cents per share final dividend.
- Automotive aftermarket parts company Bapcor Ltd (ASX: BAP) is trading ex-dividend for its 7.5 cents per share interim dividend.
- Travel company Helloworld Travel Ltd (ASX: HLO) shares have gone ex-dividend for its 8 cents per share interim dividend.
- Financial technology company IRESS Ltd (ASX: IRE) is trading without the rights to its 30 cents per share final dividend.
- Packaging company Orora Ltd (ASX: ORA) is trading ex-dividend for its 6.5 cents per share interim dividend.
