Why is the AMP share price tumbling today?

AMP shares are falling today, but it's for a happy reason.

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It's looking like this Wednesday will turn out to be a positive one for the S&P/ASX 200 Index (ASX: XJO), touch wood. After a shaky start this morning, the ASX 200 is currently enjoying a healthy gain of 0.73%. But let's talk about the AMP Ltd (ASX: AMP) share price.

AMP shares closed out at $1.245 each yesterday. But this morning, the financial services company opened at $1.21 a share and is currently trading at $1.232. That represents a loss of 1.04%.

So what's going on with AMP that has seen its share price fall when the broader markets are rising?

Well, there's an easy (and comforting) explanation for this divergence.

Why is the AMP share price falling today?

Today, AMP shares have just traded ex-dividend for the company's upcoming shareholder payment.

Earlier this month, we discussed AMP's latest earnings report for the six months to 30 June 2023. As we covered at the time, these earnings were not particularly well-received, with AMP reporting a 31% rise in revenues, but a 44% drop in statutory net profits after tax (NPAT).

But AMP also announced an interim dividend of 2.5 cents per share, partially franked at 20%, for investors.

That dividend is flat on April's final dividend of the same amount. This is the first interim dividend AMP has paid in four years. The last one was the 4 cents per share payment that investors enjoyed way back in March 2019.

But, as we warned last week, yesterday was the last day that you could have bought AMP shares if you wanted to receive this dividend. The company is now trading ex-dividend, which rules out any new investors from today onwards from receiving this latest payment.

That's why we are seeing this typical ex-dividend share price drop. It reflects the fact AMP shares are now less valuable as they now do not come with a dividend attached.

But, if you owned AMP shares as of yesterday's market close, you can now look forward to receiving your dividend cash (or your additional AMP shares if you opt for the optional dividend reinvestment plan) next month on 29 September.

AMP shares remain down by 5.8% year to date in 2023 so far. That's despite the company rising a healthy 23% or so since early July, as you can see below:

Created with Highcharts 11.4.3Amp PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Right now, the AMP share price has a dividend yield of 4.08%.

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