The Santos Ltd (ASX: STO) share price is in the red on Monday despite no news having been released by the company.
However, there is one explanation for the oil producer's suffering. Santos' shares are trading ex-dividend today.
At the time of writing, the Santos share price is $6.86, 2% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has recovered from a morning dip to trade 0.12% higher.
Additionally, the S&P/ASX 200 Energy Index (ASX: XEJ) – Santos' home sector – is up 0.04% right now.
Let's take a closer look at what could be weighing on the Santos share price today.
What's driving the Santos share price lower on Monday?
The Santos share price is sliding lower as traders buying into the company miss their chance to secure its upcoming dividend. That's right, Santos' stock is now ex-dividend.
For those who aren't familiar with the term, it means that Santos will only be paying dividends out to investors who held its shares as of yesterday's close.
Generally, stock's tend to fall in line with the value of their dividend on their ex-dividend dates, as potential buyers will miss out on the value of the payout.
Santos' final dividend for 2021 is worth 8.5 US cents – around 12 Australian cents – and is 70% franked.
It represents 1.71% of the oil producer's previous closing price – $7. That likely helps explain some of the energy giant's falls today.
The company's latest final dividend will be paid to yesterday's investors on 24 March 2022.
Impressively, Santos' upcoming dividend is 70% higher than the company's final dividend for 2020, which was worth just 5 US cents – around 6.9 Australia cents at today's exchange rate.
It's also Santos' highest dividend since its 2015 interim dividend. Back then, it handed investors 15 US cents – around 21 Australian cents.
