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Owners of shares in S&P/ASX 200 Index (ASX: XJO) online real estate advertising company REA Group Limited (ASX: REA), rejoice!
Your investment just announced its largest dividend ever, increasing its full year payout by 25%.
Sadly, the stock is in the red today after surging 7% on the back of its full year results, released yesterday.
The REA share price is $127.44 right now, 3.69% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also down, falling 0.12% at the time of writing.
But a day in the red likely won’t be enough to wipe the smile off shareholders’ faces. Let’s take a look at the record dividend announced by the ASX 200 share this week.
When will shareholders receive the ASX 200 share dividend?
Financial year 2022 was good to ASX 200 share REA, and now the company is passing a chunk of its takings to shareholders.
The company’s revenue lifted 26% last financial year compared to that of financial year 2021.
Its earnings before interest, tax, depreciation, and amortization (EBITDA) also rose 19% while its net profit jumped 25%.
And much of that profit is now up for grabs.
REA announced a record 89 cent per share fully franked final dividend, bringing its full year dividends to $1.64 – up 25% year-on-year.
That means the stock is currently trading with a dividend yield of 1.28%.
And would be investors have a few weeks to decide whether they’ll pursue the payout. The ASX 200 share doesn’t trade ex-dividend until 25 August.
The dividend is then expected to begin landing in shareholders’ accounts in mid-September.
REA share price snapshot
Despite posting strong earnings, the REA share price has been underperforming in 2022.
The company’s shares have slumped 26% since the start of the year while the ASX 200 has dumped around 8%.
It’s also been underperforming over the longer term, falling 18% in the last 12 months. Meanwhile, the index has slipped 7%.