The FlexiGroup Limited (ASX: FXL) share price has zoomed 10% higher on the ASX today, sitting at $1.65 at the time of writing.
If you've been thinking of buying shares in the financial services group for its juicy, fully franked divided, there are a few things you need to know today.
The first is that shares will go ex-dividend on Wednesday March 6, 2019. The 'ex-date' is when the shares start selling without the value of its next dividend payment so an investor needs to own the shares before the ex-date to receive the dividend. Flexigroup's dividend will then be paid on Frida,y April 12, 2019.
What is FlexiGroup's dividend yield?
At its recent half year result,s Flexigroup declared a final dividend of 3.85 cents per share for the half year. This was flat on the prior year and at the current share price, the company offers a trailing dividend yield of around 4.7% which comes fully franked.
Source: FlexiGroup Limited 1H19 presentation
Is the dividend sustainable going forward?
This is a great question to ask before buying any company for its income potential.
At the company's half-year update last week FlexiGroup provided earnings guidance for the full 2019 financial year of Cash Net Profit After Tax (NPAT) of between $76m and $80m.
The company's use of "cash NPAT" adjusts for 'material infrequent items' as well as the 'amortisation of acquired intangibles' and sits lower than the cash NPAT of $88.2m for the 2018 financial year.
However, going forward, all eyes will be on Flexigroup's 'buy now, pay later' business which has been growing swiftly and going head-to-head with hot stock Afterpay Touch Group Ltd (ASX: APT).
In addition to FlexiGroup, there are several other companies going ex-dividend on March 6, including:
