The Harvey Norman Holdings Limited (ASX: HVN) share price is having a tough finish to the week.
At the time of writing, the retail giant's shares are down 4% to $3.90.
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Why is the Harvey Norman share price falling?
There are a couple of reasons why this retailer's shares are falling today. The first is the general market weakness which has seen the S&P/ASX 200 index drop into the red.
The other reason is arguably a positive for shareholders in a roundabout way. That's because Harvey Norman's shares are trading ex-dividend on Friday, which means payday is around the corner.
When a share trades ex-dividend, it means the rights to its upcoming dividend are now settled and new buyers won't be eligible to receive this payout.
In light of this, the Harvey Norman share price has fallen to reflect this. After all, you wouldn't want to pay for something that you won't receive.
The Harvey Norman dividend
Last month, Harvey Norman released its FY 2023 results and reported a 3.8% decline in revenue to $9,193 million.
On the bottom line, margin weakness weighed heavily on its earnings, leading to the retailer reporting a 33.5% reduction in profit after tax to $539.5 million.
The company's falling profits unsurprisingly put pressure on its dividends, which came in 33% lower year on year at 25 cents per share. This comprises a fully franked interim dividend of 13 cents per share and a fully franked final dividend of 12 cents per share.
It is the latter 12 cents per share dividend that the company's shares are trading ex-dividend for today.
Eligible shareholders can now look forward to receiving this payout in a month on 13 November. Based on yesterday's Harvey Norman share price, it represents an attractive 3% dividend yield.
