Today is Ericsson NT’s ex-date. Typically, on the ex-dividend date, the share price tends to decrease by the amount of the dividend yield, which in this case amounts to 7.6%. Consequently, we should see a share price decrease around the aforementioned amount. The payment date is set for 17 July 2024.

This regards the previously approved dividend of EUR 15 per share, consisting of a regular dividend of EUR 10 per share and an extraordinary dividend of EUR 5 per share. Given today’s market closing price, we expect the stock to decline by approximately 7.6%. The exact percentage of the decrease will help determine whether the stock has appreciated or depreciated in its intrinsic value. The payment date is set for 17 July 2024.

In the graph below, we are bringing you a historical overview of the company’s dividend per share and dividend yield. Note that the yields were calculated based on the closing price the day before the initial dividend proposal.

To put things in perspective, since the beginning of the year, Ericsson’s share price increased by 5.5%, while today’s expected 7.6% decrease can be attributed to the ex-date – as without the dividend payment incentive for investors to invest in a stock vanishes.

Ericsson NT dividends per share (2013 – 2024, EUR, left), dividend yield (2013 – 2024, %, right)

Source: ZSE, InterCapital Research