Warning! Time is running out to bag the next South32 dividend

You'd better hurry if you want this miner's latest payout.

| More on:
a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

At the end of last month, we covered the latest earnings (and dividend) from South32 Ltd (ASX: S32).

This ASX 200 mining stock seemed to impress investors with these earnings, with the South32 share price rising at the time. As it stands today, the miner remains a good 4.5% or so above where it was just before these earnings were released. That's at the current South32 share price of $3.22.

This is despite this report containing some sobering numbers for the 2024 financial year.

As we went through back then, South32 revealed that its revenues from continuing operations fell 3% year-on-year to US$5.5 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at US$1.8 billion. That was an even larger 29% drop from the previous year. This resulted in South32 reporting a net loss of US$205 million for FY2024, down 18% from FY2023.

That led South32 to declare a final dividend of 3.1 US cents per share. That's a 3.13% decline from the 3.2 US cents the company doled out this time last year. As is typical with South32 though, this latest dividend will come with full franking credits attached.

Together with the interim dividend of 0.4 US cents per share that we saw paid out in April, South32's full-year dividends for 2024 now stand at 3.5 US cents (5.2 cents at current exchange rates) per share. That represents a 56.8% collapse from the 8.1 US cents (12 cents) per share that investors enjoyed over 2023.

Even so, South32 investors still have a dividend coming their way. Well, that's if they own the shares as of tomorrow's market close.

South32 shares scheduled to trade ex-dividend in two days

Yes, South32 has set this Thursday, 19 September, as the ex-dividend date for its final dividend of 2024. That means that only those shareholders who own Sotuh32 stock as of the market close tomorrow, 18 September, will be eligible to receive this dividend.

If any investor buys South32 shares on or after Thursday's session, they will leave the rights to this dividend behind with the seller. So expect to see a share price drop when the shares open for trading on Thursday, reflecting this loss of value for new investors.

For eligible shareholders who get on the record for this dividend, payday has been set for 17 October next month.

There is no dividend reinvestment plan (DRP) in operation at South32. As such, shareholders have no choice but to receive this dividend as the traditional cash payment. The final amount in Australian dollars will be determined next week on 26 September.

At the current South32 share price, this ASX 200 mining stock is trading on a dividend yield of 1.61%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »