Whenever an ASX All Ordinaries (ASX: XAO) share trades ex-dividend on the stock market, it's a pretty big deal. For one, it means that a fresh new dividend payment is getting ready to depart to eligible investors' bank accounts.
But it also means that we're primed to see a bit of a share price drop for the company in question.
Why? Well, whenever a company declares a new dividend payment, it must also nominate an ex-dividend date to preceed it.
The ex-dividend date acts as a line in the sand in terms of who actually gets the dividend. If you own a company's shares before the nominated ex-dividend date, you go on the books as being eligible for payment. However, if you buy those same shares on or after the ex-dividend date, the receiving rights to the dividend remain with the seller. You miss out, in other words.
This value leaves the dividend-paying companies' books when it trades ex-dividend. As such, we normally see a corresponding drop in that company's share price.
So today, let's talk about three ASX All Ords shares that will experience this very phenomenon over the coming week
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Three ASX All Ords shares poised to trade ex-dividend
ResMed Inc (ASX: RMD)
First up is healthcare stock Resmed. Resmed is a rather unusual share in that it pays out its dividends every quarter, rather than the normal six months. Just last week, the company revealed that its next dividend, due on 3 April, will be worth an unfranked 4.8 US cents per share. That's the same payment investors enjoyed last quarter.
Since this payment is denominated in US dollars, we don't yet know what the final amount will be in our local currency. But what we do know is that the ex-dividend payment for this upcoming dividend is set for next Wednesday, 7 February. So if you wish to bag this payment, you'll need to own Resmed shares by the close of trade on Tuesday.
Euroz Hartleys Group Ltd (ASX: EZL)
Next, let's discuss All Ords financial services share Euroz Hartleys Group. Earlier this week, Euroz Hartleys reported its half-year results for the six months ending 31 December. The company took the opportunity to announce that its upcoming interim dividend would be worth 1.75 cents per share, fully franked.
That's a bit of a drop from Euroz's final dividend from August, which was worth 3.5 cents per share. It's also a decline from last year's interim dividend of 2.5 cents per share.
Investors have until the end of trading today to secure this latest payment, given Euroz Hartleys is scheduled to trade ex-dividend tomorrow, 2 February. Payment day will then come around later this month on 16 February.
Nickel Industries Ltd (ASX: NIC)
Finally, let's talk about All Ords nickel stock Nickel Industries. Nickel Industries also gave investors some results earlier this week, albeit for the past quarter. In these results, the company revealed a final dividend of 2.5 cents per share, unfranked. That's a 25% rise over both the interim and final dividends from 2023. These both amounted to 2 cents per share.
Like Euroz Hartleys, Nickel Industries will go ex-dividend for this payment tomorrow, 2 February. So investors have until the end of today's trading to secure it if they wish.
The dividend will then be doled out to eligible investors on 19 February.
A bonus ex-dividend date for your calendar
It's probably worth mentioning a share that isn't exactly on the All Ords, but is popular and trading ex-dividend tomorrow as well. Shareholders of the Australian Foundation Investment Company Ltd (ASX: AFI) are also looking forward to their upcoming interim dividend this month.
AFIC will be forking out a fully-franked 11.5 cents per share on 26 February. That's a pleasing 4.55% rise over the 11 cents per share enjoyed in 2023. But once more, aspirants better be quick, as AFIC shares will cut off eligibility for this payout tomorrow.
