The worst performer on the ASX 200 index on Monday has been the Fortescue Metals Group Limited (ASX: FMG) share price.
In morning trade the iron ore producer's shares fell over 12% to $8.81. They have since recovered some of these declines, but are still down 8% to $9.29 in afternoon trade.
Why did the Fortescue share price crash 12% lower today?
There have been a couple of catalysts for today's share price weakness.
The first was a broad market selloff this morning which sent the majority of shares on the ASX 200 tumbling lower.
But the biggest contributor to Fortescue's share price weakness was the fact that its shares went ex-dividend this morning.
When a share trades ex-dividend, it means they are now trading without the rights to an upcoming dividend. In light of this, a share price will tend to drop in order to reflect that new buyers will not be receiving this dividend.
In respect to Fortescue, thanks to iron ore prices trading at sky high levels, it was able to declare a mammoth interim dividend last month when it released its half year results. This has made its decline today even more pronounced.
What dividend is Fortescue paying?
Last month Fortescue declared a fully franked interim dividend of 76 cents per share. This compares to its 8% or 82 cents share price decline today.
Eligible shareholders, which are those that owned shares at Friday's close, can now look forward to being paid this dividend in just over one month on April 6.
Fortescue isn't the only share that is trading ex-dividend this morning. Also trading without the rights to their next dividends are the shares of debt collector Credit Corp Group Limited (ASX: CCP), energy retailer Origin Energy Ltd (ASX: ORG), and airline operator Qantas Airways Limited (ASX: QAN).
