ANZ Share Price Drops After Ex-Dividend Trading

Highlights:

• ANZ share price drops by 4% to $27.89 in morning trade.
• Trading ex-dividend for upcoming interim dividend cited as reason for decline.
• ANZ reports 1% profit dip but raises dividend by 2 cents per share to 83 cents, partially franked at 65%.

The ANZ Group Holdings Ltd (ASX: ANZ) share price kicked off the week in the red, marking a 4% decline to $27.89 in morning trade. This movement comes as the benchmark ASX 200 index experiences a slight 0.1% dip early in the day.

Ex-Dividend Trading Dents Share Price

The notable tumble in the banking giant's shares is attributed to trading ex-dividend for its upcoming interim dividend. When a share trades ex-dividend, it signifies that impending dividend payment rights are settled, with new buyers missing out on this benefit. Consequently, the share price typically adjusts to reflect the deducted dividend value on the ex-dividend date.

ANZ's Dividend Outlook

Last week, ANZ revealed its first-half results, indicating a 1% decline in cash profit to $3,552 million for the six months ending 31 March. Despite varied performances across business sectors, the bank pleased shareholders by raising its dividend by 2 cents year on year to 83 cents per share, partially franked at 65%.

Analysts anticipate a final dividend of 81 cents per share, totaling $1.66 per share for the year, with an estimated dividend yield of 5.7% based on recent closing prices.

Pay Day Approaches for Shareholders

Eligible shareholders are set to receive ANZ's interim dividend payment in seven weeks on 1 July, offering a timely return on investment.

ASIC Investigation Looms

In addition to the dividend saga, reports emerge of ASIC investigating ANZ for suspected violations of the ASIC Act and the Corporations Act. The probe is linked to ANZ's involvement in executing a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management, as per The Australian's revelations.

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