Why is the Pilbara Minerals share price sinking today?

This lithium miner's shares are under pressure today. But why?

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The Pilbara Minerals Ltd (ASX: PLS) share price is having a tough start to the day.

In morning trade, the lithium miner's shares are down 4% to $4.57.

Why is the Pilbara Minerals share price falling?

Don't worry, there hasn't been another collapse in lithium prices nor has there been a broker downgrade.

Today's decline is attributable to the company's shares going ex-dividend this morning for its final dividend of FY 2023.

A share will tend to drop on its ex-dividend date because it means the rights to an upcoming dividend payment are now settled.

So, with new buyers of its shares not entitled to receive the payout, a share price will drop largely in value to reflect this. Which is exactly what is happening with the Pilbara Mineral share price today.

The Pilbara Minerals dividend

Last month, the lithium giant released its full-year results and revealed an impressive 242% increase in revenue to $4,064 million and a 329% jump in underlying profit after tax to $2,276.3 million.

In light of these bumper earnings, Pilbara Minerals followed up its inaugural interim dividend earlier this year with its first-ever final dividend.

The Pilbara Minerals board declared a fully franked 14 cents per share final dividend, which brought its FY 2023 dividends to a total of 25 cents per share.

Based on the Pilbara Minerals share price at Monday's close, this equates to yields of 2.9% for the final dividend and 5.25% for the full year.

When is payday?

If you're eligible to receive this final dividend, then I have some good news for you.

It won't be long until payday, with Pilbara Minerals intending to distribute its dividend in a touch over three weeks on 27 September.

The Pilbara Minerals share price is up 23% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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