Here's why the Newmont share price is making big ASX news today

Newmont shares just passed a big milestone…

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It's a big day for ASX gold share Newmont Corporation (ASX: NEM) this Monday. Not that you'd know it from looking at the Newmont share price right now.

This gold miner is having a decent, if uninspiring, session so far this Monday. At the time of writing, Newmont shares are up 0.1% at $62.51 each. That's a gain of a fraction of the size of the S&P/ASX 200 Index (ASX: XJO)'s lift of 0.81%.

But that's not why it's a big day for Newmont shares, if that isn't obvious. No, today is the day that Newmont stock has traded ex-dividend for its upcoming quarterly shareholder dividend payment.

Because Newmont is a US-domiciled company with its ASX shares only a secondary listing, it adheres to an American-style dividend policy. That means its dividends come without franking credits, but are paid out every three months. That's instead of the six-month interval that is common on the ASX.

The latest dividend from Newmont will be worth 25 US cents per share (worth around 38 cents at today's exchange rates). It will be doled out later this month on 27 June. This dividend will come in right between Newmont's previous two ASX payments. These were worth 41.6 cents (paid out in December) and 26.5 cents per share (March) respectively.

However, as we warned last week, today is the day that Newmont has traded ex-dividend for this upcoming payment. This means that anyone who didn't own Newmont shares as of market close on Friday is now ineligible to receive this dividend. So even if you buy Newmont stock today, you'll miss out on this latest payment. Instead, you'll have to wait until the company's next dividend is declared to receive any cash flow.

What about the Newmont share price?

As many ASX dividend investors would know, it is normal to see a dividend share fall substantially in value upon its ex-dividend date. This reflects the inherent loss of value for the investors buying the stock without the rights to receive the latest dividend attached.

However, this doesn't seem to be occurring today. The Newmont share price closed at $62.45 each last Friday but opened at $62.88 this morning. The gold miner is currently sitting at $62.51. That's up 0.1% for the day thus far, as we touched on earlier.

All we can conclude from this strange stock price movement is that Newmont shares would be even higher today if not for the company trading ex-dividend.

Newmont investors can all now look forward to bagging the company's dividend payment on 27 June.

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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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