The BHP Group Ltd (ASX: BHP) share price has largely been range bound between $44-45 following a devastating 15% selloff last week.
Shares in the iron ore major have struggled to find any momentum despite an improvement in iron ore prices.
According to Fastmarkets MB, seaborne iron ore prices were up on Thursday 26 August, amid an uptrend in Chinese futures. Benchmark iron ore prices increased US$4.26 per tonne to US$152.92/tonne.
Image source: Getty Images
Iron ore price showing signs of life
Iron ore prices have tipped higher this week following signs of resilient demand and accommodative policies from China.
According to Bloomberg, China's central bank chief vowed to "stabilise the supply of credit and boost the amount of money supporting smaller businesses and the real economy, after both credit and economic growth slowed in July".
This statement comes after new credit growth expanded at its slowest pace since February 2020, driven by a slowdown in government stimulus, tighter rules for property development finance and the delta variant taking a hit on the broader economy.
Commodity markets have responded positively to China's view of increasing the amount of credit and strengthening the growth in total credit.
While an uptick in iron ore prices typically spells good news for the BHP share price, it looks like the damage has already been done. Prices have fallen more than 30% from record peaks in May.
What's next for the BHP share price?
The BHP share price will go ex-dividend on Thursday 2 September for a final dividend of US$2 per share (~A$2.76).
At today's prices, the final dividend represents a yield of approximately 6.16%.
Investors should keep an eye out for the BHP share price when it goes ex-dividend, given Rio Tinto Limited (ASX: RIO)'s ex-dividend performance.
The Rio Tinto share price tumbled 6.88% on 12 August from $129.14 to $120.26 after trading ex-dividend.
Its share price decline was greater than the fully franked interim dividend of 760.06 cents per share.
