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The two weeks have been difficult for the Macquarie Group Ltd. (ASX: MQG) stock price down 15%.
The financial services provider released its full annual results on May 6, reporting double-digit increases for its key metrics. However, that was not enough to stop the bloodshed, as its shares fell 7.78% on the day.
Nevertheless, the board elected to increase its next final dividend to eligible investors.
Let’s take a look below at what you need to know about the latest dividend.
What’s wrong with Macquarie’s final dividend?
Macquarie’s share price fell recently as investors expressed disappointment with the company’s financial scorecard.
The company is expected to pay $3.50 per share to close fiscal year 22 ending March 31, 2022. That’s 4.5% more than the final dividend of $3.35 per share paid to shareholders last year. .
Furthermore, the final dividend distribution rate is 50% (in line with the target range of 50% – 70% of the company’s profit).
The higher dividend came as the company posted a 56% increase in net profit after tax (NPAT) to $4,706 million. In the prior period (FY21), the group achieved an NPAT of $3,015 million.
When can shareholders expect to be paid?
Macquarie will pay the final dividend to eligible shareholders on July 4.
However, to be eligible you will need to own Macquarie shares before the ex-dividend date which falls on Monday 16 May. This means that if you want to secure the dividend, you will need to buy the shares of the company before the close of business today.
It should be noted that on ex-dividend day, the stock price traditionally falls in proportion to the amount of the dividend.
In addition, the dividend is franked at 40%, which means that investors will receive tax credits for this.
Currently, Macquarie has a dividend yield of 3.37% and a market capitalization of approximately $69.87 billion.