The Westpac Banking Corp (ASX: WBC) share price has been moving in circles the past week.
Investor fears surrounding interest rate hikes, inflation, China's COVID-19 crisis, and a global economic slowdown are impacting the markets in May.
This led the S&P/ASX 200 Index (ASX: XJO) to fall 1.27% since last Monday, despite lifting 0.19% so far today.
Westpac, on the other hand, is currently up 1.35% to $24.325.
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Westpac shares set to go ex-dividend
Despite the recently volatility, investors have been buying the bank shares following the company's half year results last week.
This is most likely because of the upcoming ex-dividend date for Westpac shares.
Investors need to buy Westpac shares before market close on Wednesday to be eligible for the interim dividend. The ex-dividend date is on Thursday 19 May.
It's worth noting though 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 Westpac shareholders expect payment?
For those who are eligible for the Westpac interim dividend, shareholders will receive a payment of 61 cents per share on 24 June. The dividend is also fully franked which means shareholders will receive a portion of tax credits from this.
Furthermore, investors can elect to take up the bank's dividend reinvestment plan (DRP) which will instead add a number of shares to their portfolios.
There is no DRP discount rate, however, price will be determined by the daily volume-weighted average (VWAP) from 25 May to 7 June.
The last election date for shareholders to opt-in to the DRP is on 23 May.
Westpac share price snapshot
In 2022, the Westpac share price has gained 14% but is down almost 4.5% over the last 12 months.
The company's shares reached a year to date high of $24.67 last month, before moving sideways in the following weeks.
Westpac commands a market capitalisation of roughly $85 billion and has a trailing dividend yield of 4.92%.
