Shares in Rio Tinto Limited (ASX: RIO) have travelled sideways since the company delivered its half-year results and declared its interim dividend on 27 July.
After the miner registered a mixed financial scorecard for H1 FY22, the Rio Tinto share price has persisted below the psychological $100 barrier.
At Monday's market close, the mining giant's shares finished 1.87% higher to $99.57 per share. That means it's relatively flat compared to the $98.96 recorded before the release of the company's results.
In contrast, the S&P/ASX 200 Resources Index (ASX: XJR) has climbed 5.5% over the same two-week period.
Image source: Getty Images
Rio Tinto shares gear up to trade ex-dividend
Despite investor confidence recently growing in the market, the Rio Tinto share price has failed to gain traction.
It appears that the slump in the price of iron ore is putting selling pressure on companies that derive a large part of their revenue from the steel-making ingredient.
However, there could be a short-term lift on the horizon as Rio Tinto shares will trade ex-dividend on Thursday.
This means you'll need to buy the miner's shares before the market close tomorrow to be eligible for the dividend.
Historically, when a company reaches its ex-dividend day, its shares tend to fall after shareholders lock in the latest dividend.
When is payday for Rio shareholders?
For those who secure the Rio Tinto dividend, you'll receive a payment of $3.837 per share on 22 September.
While the dividend is 52% lower than the previous corresponding period, management said the market environment has become more challenging lately.
Nonetheless, the Rio Tinto interim dividend is the second highest ever, worth $4.3 billion. It represents 50% of the company's underlying earnings.
The dividend is also fully franked.
Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company.
In addition, investors can elect to participate in Rio Tinto's dividend reinvestment plan (DRP). The DRP will add a portion of shares to their portfolio instead of them receiving their dividends as cash.
There is no DRP discount rate and the last election date for shareholders to opt-in is 1 September.
Rio Tinto share price snapshot
In 2022, the Rio Tinto share price has remained flat following tough macroenvironmental conditions in the past few months.
The company's shares reached a year-to-date low of $91.91 on 15 July, before treading higher in the following weeks.
Rio Tinto commands a market capitalisation of roughly $36.28 billion and has an attractive dividend yield of 11.12%.
