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Why the ANZ (ASX:ANZ) share price is underperforming on Monday

Here’s why the Australia and New Zealand Banking GrpLtd (ASX:ANZ) share price is underperforming on the ASX 200 on Monday…
The post Why the ANZ (ASX:ANZ) share price is underperforming on Monday appeared first on Motley Fool Australia. –

ANZ Bank

The S&P/ASX 200 Index (ASX: XJO) and the banking sector may be pushing higher on Monday, but the same cannot be said for the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

In afternoon trade the banking giant’s shares are down almost 2.5% to $19.14.

Why is the ANZ share price underperforming today?

The underperformance of the ANZ share price on Monday has little to do with its business operations and a lot to do with its dividend.

This is because this morning the bank’s shares traded ex-dividend for the final dividend it declared with its full year results at the end of last month.

When a share trades ex-dividend, it means that it is now without the rights to a future dividend payment. Essentially, the seller of the share will receive the dividend and the buyer will get nothing.

In light of this, a share price will generally decline in line with its dividend to reflect this.

What is ANZ’s dividend?

Last month ANZ declared a fully franked final dividend of 35 cents per share, down from 80 cents per share a year earlier.

This dividend will now be paid to eligible shareholders in a touch over five weeks on December 16.

What about the other banks?

ANZ shares aren’t the only ones to trade ex-dividend this month.

Next in line to go ex-dividend is the Westpac Banking Corp (ASX: WBC) share price on Wednesday for its 31 cents per share fully franked dividend. This will then be paid to eligible Westpac shareholders on 18 December.

After which, a day later National Australia Bank Ltd (ASX: NAB) shares will trade without the rights to its final fully franked dividend of 30 cents per share. This dividend will be paid to eligible NAB shareholders on 10 December.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the ANZ (ASX:ANZ) share price is underperforming on Monday appeared first on Motley Fool Australia.

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