The Fenix Resources Ltd (ASX: FEX) share price is struggling through September despite only good news being released by the company.
Fenix released its annual results and news of its maiden dividend on 15 September. At the time, its maiden dividend saw the iron ore producer with a massive 16.6% dividend yield.
However, that same notable dividend might have been the downfall of the Fenix share price. It fell 23% on its ex-dividend date.
At the time of writing, the Fenix share price has recovered slightly. It is currently trading at 23 cents, 20.69% lower than at the end of August.
Let's take a closer look at the news that's been driving the mineral explorer's stock lately.
The month so far for Fenix
The Fenix share price is battling through a tough month despite posting a massive 16.6% dividend yield.
Fenix announced its profits and dividend for financial year 2021 last fortnight.
Over the 12 months ended 30 June 2021, the company sold 501,000 wet metric tonne of iron ore from its flagship Iron Ridge iron ore project. Production at the project began in December 2020, and its first sales occurred in February 2021.
As a result, Fenix boasted a $49 million net profit after tax for financial year 2021. Of its $49 million of profits, Fenix committed to paying out $24.8 million to its shareholders.
That represents a maiden dividend payment of 5.25 cents per share.
The Fenix share price gained 13% on the back of its annual results. Unfortunately, it fell 23% when the company surpassed its ex-dividend date on 20 September.
The company's dividend will be paid out to shareholders on 5 October.
Fenix share price snapshot
This month's drop has put Fenix's stock into the red on the ASX.
Right now, it is 4% lower than it was at the start of 2021. However, it's still 64% higher than it was this time last year.
