The Macquarie Group Ltd (ASX: MQG) share price is sagging during early morning trade on Monday. This comes after the investment bank announced a share purchase plan (SPP) for eligible investors along with its shares going ex-dividend.
At the time of writing, Macquarie shares are down 1.14% to $200.12 apiece.
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Macquarie opens share purchase plan
In its release, Macquarie Group advised that it will conduct a SPP to raise additional funds to support its growth strategy.
Last week, the company completed a $1.5 billion institutional placement, resulting in the issuance of 7.7 million shares.
The SPP price will be the lower of $191.28 or a 2% discount on the 5-day volume-weighted average price up until the closing date.
It's worth noting that SPP shares will be issued after the record date for the 1H22 dividend and will not be eligible to receive the dividend.
The closing date for the SPP is 26 November.
Macquarie goes ex-dividend
While the company has been busy on the news front, investors will be eyeing Macquarie shares as they go ex-dividend today.
Typically, one day before the record date, the ex-dividend date, is when investors must have purchased Macquarie shares. If the investor does not buy Macquarie shares before this date, the dividend will go to the seller.
Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company's shares after securing the dividend.
What does this mean for Macquarie shareholders?
For those eligible for Macquarie's first-half dividend, shareholders will receive a payment of $2.72 per share on 14 December. The dividend is also partially franked which means that shareholders can expect to receive tax credits from this.
Investors who elect for the dividend reinvestment plan (DRP) will have no discount applied to the volume-weighted average price. This is for the 5 trading days leading up to and inclusive of the ex-dividend date.
The payout ratio of 50% is in line with Macquarie's dividend policy (50% to 70% annual payout ratio).
Macquarie share price summary
It has been an outstanding year for Macquarie shares, trekking 45% higher for 2021 and nearly 50% for the last 12 months. The company's shares reached an all-time high of $204.22 last Friday.
Based on today's price, Macquarie commands a market capitalisation of roughly $74 billion, and has approximately 376.65 million shares outstanding.
