You may be wondering why the Grange Resources Limited (ASX: GRR) share price is falling 4.12% to 81.5 cents today.
The S&P/ASX 200 Index (ASX: XJO) is up 0.65% in early morning trade following upbeat sentiment on Wall Street.
For context, the Dow Jones rose 0.71% overnight, and is up 3% in the past week.
Let's take a look at why the iron ore pellet miner's shares are losing ground on Tuesday.
Why are Grange Resources shares in the dirt today?
Investors are offloading the Grange Resources share price as it trades ex-dividend today.
This means if you purchased the company's shares yesterday or before, you will be eligible for the latest dividend.
When a company's shares trade ex-dividend, the share price tends to fall in proportion to the dividend paid out. This can also vary on how the market is tracking for the day as well as investor sentiment.
Grange Resources is set to pay a fully-franked interim dividend of 2 cents per share on 30 September.
This marks a significant drop from the 10 cents per share declared by the board in the prior corresponding year.
The company reported double-digit losses across key financial metrics in its half-year results.
Management blamed the weak performance on soaring energy costs and volatility in iron ore prices.
While there was no mention of the final dividend, this will largely depend on Grange Resources keeping costs under control.
However, Goldman Sachs believes iron ore prices have further to fall, which could put pressure on the next dividend.
Grange Resources share price summary
After hitting a multi-year high of $1.79 on 8 June, the Grange Resources share price has tumbled more than 50%.
Nonetheless, the share is still up 8% year to date.
In comparison, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is down 2% over the same timeframe.
Grange Resources commands a market capitalisation of approximately $983.7 million and has a trailing dividend yield of 14.2%.
