One of the worst performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today has been the BHP Billiton Limited (ASX: BHP) share price.
In afternoon trade the mining giant's share price is lower by almost 4.5% to $24.14.
Why has the BHP Billiton share price tumbled?
Firstly, one key reason why BHP Billiton's shares are lower today is the fact that it has gone ex-dividend. This means that its interim dividend belongs to investors which owned its shares at yesterday's market close.
Generally a share price will fall on the day its goes ex-dividend. This allows the buyer of the shares to purchase them at a lower price, compensating them for the fact that they will not receive the benefit of the dividend payment.
BHP's interim dividend is approximately 52 cents fully franked, roughly equating to a yield of 2% on yesterday's close price.
Whilst its ex-dividend status explains why its shares dropped 2%, it doesn't explain the full decline.
The rest of the decline can be attributed to a broad sell-off in the energy and materials sectors. Both sectors are down around 2% today thanks partly to a slump in oil and iron ore prices.
As well as BHP, this has dragged the Fortescue Metals Group Limited (ASX: FMG) share price and the Santos Ltd (ASX: STO) share price down by around 3% today.
Should you buy the dip?
As I'm reasonably bearish on both oil and iron ore I wouldn't be in a rush to invest in BHP Billiton even after this decline.
Instead, I would suggest investors look at the healthcare and information technology sectors for investment ideas. At present I believe there are some high quality companies trading at great prices.
