The GrainCorp Ltd (ASX: GNC) share price has taken a tumble on Wednesday.
In afternoon trade, the grain exporter's shares are down 3% to $7.73.
This puts the GrainCorp share price among the worst performers on the ASX 200 index today.
Interestingly, this decline comes despite the company releasing its FY 2022 results today and supersizing its dividend.
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The GrainCorp dividend
This morning, GrainCorp released its full year results and revealed a 174% increase in net profit after tax to $380 million. This was driven by a 127% increase in Agribusiness operating earnings to $624 million and a 63% lift in Processing operating earnings to $127 million.
In light of this strong performance, the GrainCorp board declared a fully franked final dividend of 14 cents per share and a special dividend of 16 cents share.
This took the company's dividends to a total of 54 cents per share for FY 2022, which is a whopping 200% increase on FY 2021's 18 cents per share dividend.
Eligible shareholders can look forward to being paid GrainCorp's final and special dividends next month on 14 December.
So why is the GrainCorp share price falling?
The weakness in the GrainCorp share price today appears to have been driven by management's outlook commentary.
Although its CEO, Robert Spurway, believes "GrainCorp is well positioned for the new financial year," he warned that heavy rainfall has been impacting operations on the East Coast of Australia. (ECA).
He notes that "heavy rainfall across large parts of ECA has delayed the harvest by several weeks and continues to present challenges for growers, their communities and local businesses."
In addition, Spurway highlighted that "flooding will impact both yield and quality in parts of ECA" and that "exceptional margins achieved in the first half of FY22 moderated in the second half."
All in all, investors appear doubtful that GrainCorp will be able to build on this result in FY 2023 and are now expecting a sizeable earnings and dividend decline.
