Want to secure the biggest ever dividend from this ASX 200 share? Here's why you need to buy today

What's sending Carsales shares into positive territory today?

| More on:
A handsome smiling man sits in the front seat of an electric vehicle with his hands on the wheel feeling pleased that the Carsales share price is going up and the company will shortly pay its biggest dividend ever

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The company's shares are due to trade ex-dividend tomorrow
  • Eligible shareholders will receive a dividend payment of 25.5 cents per share on 19 April
  • This is the biggest dividend ever paid by Carsales 

The Carsales.com Ltd (ASX: CAR) share price is climbing during morning trade, adding to its decent gains last week.

This comes despite the auto listings company not releasing any price-sensitive announcements to the ASX today.

At the time of writing, the Carsales share price is up 4.33% to $21.93.

Why is the Carsales share price going up?

While the company has been quiet on the news front lately, investors are bidding up the Carsales share price.

This is most likely because of the upcoming ex-dividend date for Carsales shares.

Investors need to buy Carsales shares before the market close today to be eligible for the interim dividend. The ex-dividend date is tomorrow, Friday 18 March.

It's worth noting that 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.

When can Carsales shareholders expect payment?

Eligible shareholders will receive a dividend payment of $25.5 cents per share on 19 April. This represents growth of 2% compared against the previous corresponding dividend of 25 cents per share.

It's also worth noting that this is the biggest dividend ever paid by the company.

The interim dividend is fully franked, which means shareholders can expect to receive tax credits.

Investors can elect to reinvest their dividends through the dividend reinvestment plan (DRP), which will buy them more shares in lieu of a cash payment.

While there is no DRP share price discount, the last election date for Carsales shareholders to opt-in is 22 March.

The DRP will be calculated using the 5-day average daily volume-weighted price from 22 March to 28 March.

The latest dividend is consistent with the company's longstanding dividend payout policy of 80%.

Carsales share price summary

Over the last 12 months, the Carsales share price has surged by almost 20% but it is down 14% year to date.

The company's shares reached a 52-week high of $26.67 in November before treading 17.7% lower to today's price.

Carsales commands a market capitalisation of roughly $5.94 billion and has a trailing dividend yield of 2.26%.

Should you invest $1,000 in Carsales.com right now?

Before you buy Carsales.com shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Carsales.com wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 5 December 2024

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Dividend Investing

Buy these high-yield ASX 200 dividend stocks in 2025

Which dividend stocks are getting the thumbs up from analysts right now? Let's find out.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Analysts name 3 ASX dividend shares to buy in January

These shares have been tipped as buys for income investors.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

Invest $30,000 in 2 ASX shares, create almost $3,000 in passive income

I think both these ASX dividend shares will continue to deliver attractive passive income in 2025.

Read more »

Dividend Investing

Buy these ASX 200 dividend shares for 5% to 8% yields

Analysts are tipping these shares to provide income investors with great yields.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Dividend Investing

Broker says these ASX dividend stocks could generate massive returns

Bell Potter is tipping these shares to generate big returns for investors.

Read more »

Dividend Investing

I think these 2 ASX dividend shares are buys for income in January

Looking for big dividend yields? These stocks could bring it.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Broker says these ASX 200 dividend stocks are best buys

The broker has its eyes on a mining giant and a toll road operator.

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

2 ASX dividend stocks I'd buy for big income

These stocks offer a significant dividend potential.

Read more »