Here's why the Goodman Group share price is sinking today

What's happening with the global property group's shares on Wednesday?

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Key points

  • Goodman shares are sliding almost 4% in early morning trade on Wednesday
  • The company's shares are trading ex-dividend today
  • Eligible shareholders will receive a payment of 15 cents per stapled security on 25 August

You might be wondering why the Goodman Group (ASX: GMG) share price is backtracking almost 4% today.

The S&P/ASX 200 Index (ASX: XJO) is also down by 1.06% to 6,692.2 points following losses overnight on Wall Street.

Nonetheless, the integrated commercial and industrial property group shares are down 3.79% to $18.27 at the time of writing.

Let's take a look at why Goodman shares are heading south during early morning trade.

Shareholders set eyes on Goodman dividend

Investors are offloading Goodman shares as they set to trade without rights (ex-dividend) today.

Listed one business day before the record date, the ex-dividend date is when investors must have purchased shares. If you did not buy Goodman shares before this date, the dividend will be paid to the seller.

For those eligible for Goodman's interim dividend, shareholders will receive a payment of 15 cents per stapled security on 25 August.

The dividend is unfranked which means there are no tax credits attached to this.

In case you weren't aware, the company's dividend reinvestment plan (DRP) remains suspended with no indication as to when it will return.

Goodman's policy is to distribute in the low 50% range of operating earnings and taxable income for the full year. This is reviewed by its board each financial year in light of operating performance and current market conditions.

Goodman share price summary

Since the beginning of 2022, Goodman shares have lost more than 30% on the back of weakened investor sentiment. The benchmark ASX 200 Index is also down around 10% over the same timeframe.

Goodman shares reached a 52-week low of $16.80 this month, before rebounding in the following weeks.

Based on today's price, Goodman commands a market capitalisation of roughly $34.5 billion, and has a dividend yield of 1.61%.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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