It's a big week for ASX dividend investors as BHP Group Ltd (ASX: BHP) gears up to pay a whopping US$8.9 billion in fully franked dividends to eligible shareholders tomorrow.
BHP shares have already past their ex-dividend date, so these dividends are no longer on the table.
But there are other companies in the S&P/ASX All Ordinaries Index (ASX: XAO) that are yet to turn ex-dividend.
In particular, two ASX All Ords shares will be going ex-dividend on Friday. Since the ASX is closed tomorrow, today will be the final day to pick up the latest dividends from these ASX All Ords shares.
Both of these ASX All Ords shares are flashing sizeable trailing dividend yields. So, don't be surprised to see their share prices in the red on Friday as the value of their respective dividends leaves their share prices.
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Latitude Group Holdings Ltd (ASX: LFS)
First up, consumer finance business Latitude will be trading on Friday without a fully franked interim dividend of 7.85 cents per share.
Investors on the company's share registry when the market closes today should receive this payment on 26 October.
Alternatively, shareholders have the option to forgo this cash payment in favour of participating in the company's dividend reinvestment plan (DRP). Those who wish to participate must elect to do so by 27 September.
The market doesn't appear pleased with Latitude's first-half 2022 results, with shares down 9% in the last month.
Volumes came in at $3.7 billion, up 2% from the prior corresponding period (pcp) of 1H21, led by the personal and auto loans divisions.
Risk-adjusted income fell by 70 basis points from the pcp to 9.46%, weighed down by lower product pricing and higher funding costs.
Given that Latitude makes the bulk of its revenue from interest on its products, other challenges during the half included excess consumer savings and elevated repayment rates.
Overall, the company's cash net profit after tax (NPAT) dropped by 11% on the pcp to $93 million. On a statutory basis, which includes non-cash items such as amortisation and impairments, NPAT tumbled 66% to $31 million.
Despite the reduction in profits, Latitude held its interim dividend steady at 7.85 cents. This is in line with the company's last two (and only) dividend payments since listing in mid-2021.
This means that Latitude shares are currently spinning up a sizeable trailing dividend yield of 11.5%. Including franking credits, this yield cranks up to 16.4%.
However, broker Macquarie believes Latitude could slash its dividends in the future, forecasting FY23 dividends of 8 cents per share. Based on current prices, this equates to a prospective forward dividend yield of 5.8%.
BSP Financial Group Ltd (ASX: BFL)
Also going ex-dividend on Friday is BSP Financial, the leading bank in the South Pacific.
Like Latitude, BSP recently released its first-half 2022 results. The group cut its unfranked interim dividend by 13% to 34 Papua New Guinean Kina (K).
ASX investors will receive this dividend in Aussie dollars on 14 October.
The exchange rate will be finalised next week. But based on current spot prices, this dividend could land at around 14 Australian cents.
Economic conditions in BSP's markets improved in 1H22, leading to a 13% lift in net operating income to K1,144 million. More specifically, this was driven by increased lending activities in Papua New Guinea and Fiji, and higher transactional volumes now that borders have re-opened.
On the bottom line, BSP delivered 30% growth in underlying NPAT, which reached K586 million. However, the company was slugged with an additional company tax of K190 million as part of new legislation that came into effect earlier this year.
BSP has filed an application to the Supreme Court to declare the additional company tax unconstitutional and invalid.
Circling back to dividends, we'll have to wait for the confirmed exchange rate next week. But BSP Financial shares could be trading on a trailing 12-month dividend yield of around 13% at current levels.
That said, between fluctuating exchange rates, foreign operations, and a different regulatory environment, BSP shares could be more complicated than your ordinary ASX investment.
