The Elders Ltd (ASX: ELD) share price is suffering on Monday after the company revealed disappointing first half earnings, including an 18% cut to its interim dividend.
The S&P/ASX 200 Index (ASX: XJO) agriculture company will provide shareholders with just 23 cents per share. That's compared to the 28 cents per share it paid out this time last year.
Right now, shares in Elders are down 11.99%, trading at $7.31.
Let's dive into all that those invested in the company need to know about their newly slashed interim payout.
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Elders slashes interim dividend 18% to 23 cents per share
The market is bidding Elders shares lower on the back of a 46% tumble in first-half profits, as The Motley Fool Australia reported earlier.
Its earnings were dinted amid weaker conditions for the agriculture industry compared to a strong performance in the prior period. And now passive income investors might feel some of the impact.
The company declared a 23-cent per share, 30% franked, interim dividend this morning.
That's dwarfed by the offerings it handed out last financial year. Though, it does come in 15% higher than the financial year 2021's 20 cents per share, 20% franked, interim offering.
Elders shares will trade ex-dividend next Tuesday. That means would-be investors have a week to get on board the company or miss out on the payment.
Those invested in the company as of next Monday's close will see the dividend hit their accounts from 22 June.
Elders will run its dividend reinvestment plan (DRP) for its interim offering. Though, no discount will be applied to the shares provided. Investors have until 26 May to register to receive their dividend in the form of stock rather than cash.
But there's a silver lining to the ASX 200 agriculture stock's tumble.
Considering both its newly announced 23-cent dividend and its recent 28-cent final dividend, Elders shares trade with a 7% dividend yield at its current share price.
