Credit: Matt Paul Catalano via Unsplash
Shares in Nine Entertainment fell more than a third today to $1.10, leading the losers on the ASX.
The key reason is the big dividend paid to shareholders from the proceeds of the media group’s 60% stake in Domain.
The dividend paid per share was 53 cents, about one third of yesterday’s share price.
The market sees the company now not worth as much because the cash for the dividend is no longer in the bank but in the hands of shareholders.
And today was what the market calls ex-dividend, when the dividend is paid.
Nine’s share from its 60% holding in Domain was about A$1.4 billion in cash proceeds, net of capital gains tax.
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