Why is the Ampol share price tumbling 5% on Friday?

The Ampol share price is taking a big fall on Friday.

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Woman refuelling the gas tank at fuel pump, symbolising the Ampol share price.

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The Ampol Ltd (ASX: ALD) share price is taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $39.40. In morning trade on Friday, shares are swapping hands for $37.31 apiece, down 5.3%.

For some context, the ASX 200 is up 0.3% at this same time, charging into new record territory.

Here's what's happening with Ampol today.

Why is the Ampol share price underperforming on Friday?

The Ampol share price is pulling back from the new all-time closing highs the company posted earlier this week.

Most, if not all, of the selling pressure stems from the fact that the stock is trading ex-dividend today.

That means investors buying shares today will no longer be eligible to receive the record-high dividend management declared when the company reported its full-year results on Monday. When a stock trades ex-dividend, you'll generally find its share price under some extra pressure on the day.

Ampol's supersized high dividend was fuelled by a boost in 2023 earnings and a strong balance sheet. This saw the ASX 200 energy stock deliver a fully franked final dividend of $1.20 per share and a special dividend of 60 cents per share.

That equates to a fully franked final dividend of $1.80 per share, up 16% from 2022's final payout.

Looking at the Ampol share price moves this morning, if we were to add that $1.80 back in then the share price would be down less than 1%. And remember, that $1.80 comes with full franking credits.

Commenting on the company's yearly performance on Monday, Ampol CEO Matt Halliday said, "The result reinforces the adaptability and resilience of Ampol's integrated supply chain in what was another year where energy markets moved rapidly in response to geopolitical events."

Atop the final dividend, Ampol paid an interim dividend of 95 cents per share for a full-year payout of $2.75 per share.

At the current Ampol share price, this equates to a fully franked trailing yield of 7.4%.

Motley Fool contributor Bernd Struben 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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