The S&P/ASX 200 Index (ASX: XJO) is having another pleasing opening so far this morning after yesterday’s welcome recovery. At the time of writing, the ASX 200 is up a decent 0.69% at just under 7,101 points. So it might come as an initial disappointment to see that the South32 Ltd (ASX: S32) share price doesn’t seem to be joining the party.
In fact, South32 shares look like they are tanking today. The diversified miner is currently down by a nasty 4.06% at $4.73 a share.
Now, you might think this drop is related to the general rejection of mining and energy shares that we are seeing so far on the ASX today. South32’s compatriots, such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Woodside Petroleum Limited (ASX: WPL), are indeed all in the red thus far.
But investors can blame another factor for making things worse for the South32 share price. However, it’s not necessarily a bad one.
South32 share price lower after trading ex-dividend
Today is the day that South32 shares have traded ex-dividend for the company’s upcoming interim dividend payment. Yes, from today, any new investors in South32 will be ineligible to receive this company’s latest dividend. As such, the value of this dividend has left the South32 share price.
But investors who owned the shares prior to today can look forward to a figurative cheque in the mail. The fully franked interim payment will be worth 8.7 US cents per share. This will be sent out to investors on 7 April.
As is common with dividends initially determined in a foreign currency, we don’t yet know for sure how much this dividend is worth in our own dollars. But on today’s exchange rates, a payment of 8.7 US cents would equate to approximately 12 Australian cents per share.
On the current South32 share price, this ASX 200 miner has a dividend yield of 3.59%.
South32 shares are up 18% this year to date and 72% over the past 12 months.
The post Here’s why the South32 (ASX:S32) share price is sliding today appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Thursday
- Here are the 3 most heavily traded ASX 200 shares this Wednesday
- Want the dividends from these 5 ASX shares? You’d better be quick!
- These 3 ASX 200 shares are topping the volume charts on Tuesday
- Here’s why the South32 (ASX:S32) share price has soared 25% in a month
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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