A couple of things about dividends. When you purchase a company...

A couple of things about dividends. When you purchase a company which is trading "cum dividend", that is "with" dividend you will receive the declared dividend for the period. Broking platforms will show the lettering "CD" as the basis of trading when a dividend is still available for he purchaser. On the day that the company goes "ex dividend" (denoted by the lettering "XD") the share price will adjust to refelect that the dividend is no longer available for any new shares purchased. It represents the cash which has left the company and ipso facto the valuation of the company. Obviously the share price will adjust by the amount of the dividend (all other things being equal on the first day of XD trading). The XD code will be listed as the basis of trading until the payment date of the dividend. All the relavent dates are oulined by the company in a release to the ASX when the dividend is declared

For Australian investors there is another consideration for dividends and that is franking credits. Companies generate franking credits when they pay tax in Australia. The theory behind franking credits (introduced by Hawke and Keating in the 1990's) is that shareholders are the company, and that when a company pays tax they are paying it on behalf of the shareholder. Therefore when the company pays a dividend out of after tax profits the shareholder shouldn't have to pay tax again on the same profit ("double dipping"). So the credit generated can lower the personal tax payer's cash payment when making a tax return, or in some circumstances result in a cash return to the tax payer if they are in a low income bracket. This particularly affects self-funded retirees and is the issue that created so much hoo-ha at the last Federal election.

There is also an argument that the shares should drop by more than the dividend amount, that is by the gross dividend amount (dividend + franking credit) because the credit is a real benefit to an Australian shareholder. In fact for a few years there were savvy shareholders who were buying the shares on the last day of cum trading and selling on the first day of ex trading then claiming a loss for the drop in share price and taking the franking credit as a profit margin. This was known as "dividend washing" but was halted by the 45 day rule which requires holders who are claiming the franking credit must hold the shares for at least 45 days around the Ex div date.

Others above have explained what that will mean for you in the current interim reporting period but be aware of the tax implications if you are trading to pick up dividends. I'm slightly surprised though by your question given your longevity on this platform. I presume your investment strategy is a trading one to date?