The Australia and New Zealand Banking Group (ASX: ANZ) share price has started the week in the red.
In morning trade the banking giant's shares are down 2.5% to $25.59.
Why is the ANZ share price sinking lower today?
The good news is that today's decline has nothing to do with its performance or concerns over the banking sector.
The reason for the bank's share price weakness is that its shares are trading ex-dividend.
When a share trades ex-dividend, it means they are trading without the rights to an upcoming dividend.
In light of this, the share price will almost always drop lower by the amount of the dividend to reflect the fact that new buyers of its shares won't be receiving the payout.
What dividend is being paid?
ANZ's shares have gone ex-dividend for its final partially franked 80 cents per share dividend. This will now be paid to eligible shareholders on December 18.
Interestingly, if you take the dividend out of the equation, ANZ's shares would actually be pushing higher today with Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four. At the time of writing ANZ's shares are down 64 cents, compared to its dividend of 80 cents.
It isn't just ANZ trading ex-dividend this morning. The Macquarie Group Ltd (ASX: MQG) share price is trading lower after going ex-dividend for its partially franked $2.50 per share dividend. This will also be paid to eligible shareholders on December 18.
And later this week, both National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) shares will trade without the rights to their next dividends.
Westpac goes ex-dividend on Tuesday November 12, whereas NAB goes ex-dividend on Thursday November 14. This means you'll have to act fast if you want to qualify for their next payouts.
