The Rio Tinto Ltd (ASX: RIO) share price has slumped in the past week after trading ex-dividend.
Rio shares have lost 12% between Monday 7 March and today's close. The company's share price finished the day 0.52% down, at $111.12.
Let's take a look at what's impacted the Rio share price during the past week.
Image source: Getty Images
Why did the Rio share price fall?
A major reason for the share price fall was the company trading ex-dividend last week. The company will be offering a fully-franked final dividend of US$10.40 per share on 21 April.
Trading ex-dividend tends to make a company's share price fall in proportion to the dividend paid out, as my Foolish colleague Aaron noted last week. Any shareholders who bought Rio Tinto shares on or after ex-dividend day are not eligible for the latest dividend.
Iron ore prices may have also impacted the Rio share price in the past week. The global iron ore price slipped 4% from $US159 per tonne on 7 March to the latest reported price of $152.50, Trading Economics data reveals.
In other news, Rio also revealed it was cutting all ties with Russia on Thursday. This sparked questions about the company's Queensland Alumina Limited refinery. Russian company Rusal holds 20% of this business. There is speculation Rio may need to buy out Rusal's share of the venture.
Also last week, Rio was hailed as one of the top three dividend payers in the world for 2021. The only ASX share to top Rio in the list of global dividend payers was BHP Group Ltd (ASX: BHP). Fortescue Metals Group Limited (ASX: FMG) came in at number 10.
Rio share price snapshot
The Rio share price has shed nearly 5% in the past year. It's fallen 9% in the past month alone although it is up 11% year to date.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 5.7% over the past 12 months.
Rio has a market capitalisation of about $41 billion based on its current share price.
