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.
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.
Here are 3 stocks I own in April 2020...
Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).
While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.
That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!
Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.
Our report is 100% free and unlocks hundreds of hours of bonus content.
Disclaimer and warning: The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms of Service and Financial Services Guide before using this website.
Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.