For those investors concerned about why BHP Billiton Limited (ASX: BHP) has dropped a further 1.7% today, do not be alarmed.
The stock is now trading ex-dividend, meaning anyone holding the shares yesterday is entitled to the final US62 cent (67 cents) dividend which was declared by the miner on 19 August. This took the company's full-year dividend to US 121 cents, up 4% compared to the prior year.
There's no doubt that investors were hoping for an even greater handout. Indeed, BHP's failure to announce a share buyback program or a special dividend is seen as one of the primary reasons the stock has fallen so heavily since the release of its results (it is now down 8.7% since the eve of its announcement).
However, BHP's decision to withhold that additional capital was probably a good one given the volatile conditions currently being experienced by the mining sector. Shareholders may well see a share of that capital in the years ahead.
Until then, the final dividend will be distributed to shareholders on Tuesday 23 September, 2014.
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Currently priced at $36.28, BHP's shares offer a grossed up 5% yield. However, the possibility of great capital gains over the coming years could be compromised by the sheer size of the corporation itself.
