The Inghams Group Ltd (ASX: ING) share price was trading 4% lower today. Over the past month, shares of Inghams Group Ltd are down a hefty 20%. For comparison, the S&P/ASX 200 (INDEXASX: XJO) has risen 3% in the same time.
About Inghams Group Ltd
Inghams was founded in 1918 and has gone on to become Australia and New Zealand’s leading poultry producer supplying retail, restaurants and foodservice customers with four million birds per week. Inghams employs more than 8,000 staff across its feed mills, farms, hatcheries, processing plants and distribution centres.
What’s Happened?
Inghams has not reported any news this morning to affect the share price, however, today is the ex-dividend date. What this means is that investors who purchase shares from today onwards are not eligible for the 10.5 cents per share dividend to be paid on October 9th.
Before the ex-dividend date, shareholders that purchase ordinary shares are entitled to the next dividend payment. Leading up to this date, share prices tend to increase as investors are willing to pay a premium to receive the dividend.
When shares trade ex-dividend, the share price tends to fall as investors are no longer willing to pay a premium.
Should you be worried about the Inghams share price fall?
No, not really.
This is a predictable share price drop that a lot of companies will experience through September as shares trade ex-dividend leading up to distributions at the end of this month and through October. So, if you see a share price has fallen steeply and you can’t find an explanation, always check to see if there’s an upcoming dividend and that could explain it.
For three dividend share ideas have a look at the free report below.
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Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.
