The Magellan Financial Group Ltd (ASX: MFG) share price is enduring one of its worst days on the ASX since the COVID-19 crash in 2020. However, in this article, we take a look at all there is to know about Magellan's latest dividend.
Clearly, investors were disappointed by Magellan's full-year result. Yet, for long-term shareholders that hold conviction in the company, the details of its latest dividend are important.
Let's dive into the details.
Image source: Getty Images
Details worth knowing about
The Magellan share price is painted red today, with shareholders wearing paper losses to the tune of 10%. At the time of writing, the fund manager is the worst performing share in the S&P/ASX 200 Index (ASX: XJO).
For dividend investors, the picture portrayed may not be so bleak. Despite Magellan's 33% fall in profits, the company only shaved 1.7% off its total dividends for the financial year.
Furthermore, the small reduction in dividends to be paid was driven by a fall in the performance fee portion of the payout.
Looking at the summary, interim and final dividends actually increased 8.2% to 199.7 cents per share for the year. Meanwhile, performance fee dividends fell 18.9% to 11.5 cents per share.
If you're hoping to collect the next Magellan dividend, here are the dates that are important to know:
- The ex-dividend date will be 23 August 2021.
This is the cut-off date to become a Magellan shareholder eligible for the next dividend payment. Remember, you must purchase before the ex-dividend date to be eligible.
- The record date will be 24 August 2021.
Shareholders who appear on the company's share register at the end of this date will receive Magellan's dividend.
- The payment date will be 23 September 2021.
This will be the date on which eligible shareholders will receive the dividends in their accounts.
Magellan dividend DRIP established
In a move that long dividend investors will appreciate, Magellan also announced the establishment of a dividend reinvestment plan (DRIP).
According to the company, shareholders will be able to nominate for their dividends to be reinvested at a 1.5% discount to the market price. Chairman Hamish Douglass said:
The establishment of the MFG DRP is a fair and efficient way to retain a modest amount of additional capital whilst at the same time maintaining our dividend policy of paying out 90-95% of the profits from our funds management business.
The poor performance on Tuesday means the Magellan share price is now down more than 27% over the past year. As a result, the company's market capitalisation is now around $8.48 billion.
