The Fortescue Metals Group Limited (ASX: FMG) share price is down 8.3% to $8.25 in trade today, but there's no need for shareholders to panic because the shares went without the rights to a 60 cents per share special dividend as at today May 22.
In other words 60 cents of the 75 cents share price fall is the result of the dividend no longer being available to mean the stock is only down 1% or 2% on an adjusted basis.
Overall the stock is still up more than 80% over just the past year thanks to the surprise rebound in the iron ore price.
The rebound is being driven by supply shortages out of Brazil after the tragic January 2019 tailings mine dam disaster that saw more than 300 people killed at a mine site operated by Vale SA.
In total Fortescue will now have paid 90 cents per share over FY 2019 to mean investors have enjoyed a whopping yield above 10% even on yesterday's cum-dividend price.
Many investors wrote off the likes of Fortescue, BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) as dividend stocks due to their debt loads and the cyclical nature of commodity prices. However, that's proven a huge mistake recently.
