The Coronado Global Resources Inc (ASX: CRN) share price is having a difficult finish to the week.
At one stage today, the coal miner's shares were down a sizeable 9% to $1.86.
This makes the Coronado share price the worst performer on the ASX 200 index on Friday.
Image source: Getty Images
Why is the Coronado share price the worst performer on the ASX 200?
The good news for shareholders is that today's decline has nothing to do with the coal price.
In fact, the NYMEX coal price rose overnight, leading to fellow coal miners New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) outperforming the ASX 200 index this afternoon.
So, why is the Coronado share price taking a tumble today?
This weakness has been driven by the coal miner's shares trading ex-dividend this morning for its latest dividend.
When a company's shares trade ex-dividend, it means that the rights to an upcoming dividend payment stay with the seller and don't transfer to new buyers. As a result, a share will generally drop in line with the dividend to reflect this.
The Coronado dividend
At the end of last month, the company released its third quarter update and revealed that its year to date revenue was up 107.8% over the prior corresponding period to US$2,854 million.
This underpinned bumper cash generation and allowed the Coronado board to declare a special dividend of approximately 13.4 US cents per share. At current exchange rates, this represents a dividend of approximately 20 Australian cents per share, which equated to a 9.8% dividend yield based on yesterday's close price.
So, if you take this 20 cents per share dividend out of the equation, the Coronado share price would actually be trading higher today.
Eligible shareholders can now look forward to receiving this special dividend next month on 12 December.
