Ever since IGO Ltd (ASX: IGO) reported its FY22 full-year earnings last month, the company's shares have trended higher. The ASX 200 diversified miner dropped its earnings back on 30 August, and the shares haven't looked back (well, until today).
Even after the nasty 2.01% fall to $14.65 a share that we've seen today so far, the IGO share price is still up almost 10% since those earnings were released.
Perhaps it was the 34% increase in revenues to $903 million that got investors excited. Or the 51% rise in underlying earnings to $717 million. But IGO also announced a fully franked final dividend of five cents per share. That's what we'll be discussing today.
This dividend was a significant drop from the company's final dividend of 10 cents per share for FY21. It matches the company's interim dividend of five cents per share that was paid out back in March.
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IGO dividend is inbound, here's what you need to do
So what do investors need to do to secure this dividend payout? Well, they will need to act fast. That's because IGO shares are scheduled to trade ex-dividend for this payment tomorrow, 15 September.
When a company's shares trade ex-dividend, it effectively cuts off any new investors from receiving the dividend payment in question. So from tomorrow, all new IGO investors won't be eligible for this final dividend.
As such, we usually see a corresponding drop in the value of a company's shares when this happens. This reflects that the value of this dividend is now lost to new investors, thus the shares are inherently worth less. So expect a fall in the IGO share price tomorrow, reflecting this.
So after this ex-dividend date tomorrow, investors will have to wait until the last day of the month, 30 September, to receive the payment.
When this payment is doled out, it will give IGO shares a dividend yield of 0.7% based on the current IGO share price.
At the current share price, this ASX 200 mining share has a market capitalisation of around $11.04 billion.
