The Pilbara Minerals Ltd (ASX: PLS) share price is down 3.2% in early trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday at $4.21. In early morning trade on Thursday, shares are changing hands for $4.08.
So, why is the Pilbara Minerals share price falling in a hole today?
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ASX 200 lithium miner's maiden dividend
The Pilbara Minerals share price isn't the only one under pressure today. Three of the other ASX 200 lithium stocks are also in the red. Though they're not falling nearly as steeply as Pilbara.
That mostly has to do with the company's inaugural dividend.
Last Friday, 24 February, Pilbara Minerals released its half-year results.
Among the surprises, the company declared its first-ever dividend of 11 cents per share, fully franked. At yesterday's closing price that represents a yield of 2.6%.
And investors won't have to wait long to realise that yield, with payment scheduled for 24 March.
Today, the Pilbara Minerals share price is sliding as the stock is trading ex-dividend. Meaning investors buying shares today will no longer receive that 11 cents per share payout.
It's pretty standard for a company's share price to fall by roughly the amount of its dividend payout on the day it trades ex-dividend.
Commenting on Pilbara Minerals' decision to pay a dividend, CEO, Dale Henderson pointed to the strong half-year financial results.
Revenue, for example, came in at $2.2 billion. That was up 647% from the prior corresponding period. Statutory net profit after tax (NPAT) leapt even further, up 989% year on year to reach $1.24 billion.
"This result has enabled the board to declare an inaugural fully franked interim dividend of 11 cents per share," Henderson said. "This is a huge milestone for Pilbara Minerals, and we are very pleased to be able to reward our shareholders who have had faith and stuck with us over the journey."
Pilbara Minerals share price snapshot
The Pilbara Minerals share price, pictured below, is up 45% over the past 12 months.
With today's intrada slide factored in, shares in the ASX 200 lithium miner are up 9% so far in 2023.
