The South32 Ltd (ASX: S32) share price is down 2.1% to $2.58 on Thursday, while the S&P/ASX 200 Index (ASX: XJO) is down 0.6%.
So, what's dragging the diversified miner down today?
Image source: Getty Images
Why is the South32 share price in the red?
Well, it's all very simple and to be expected.
It's ex-dividend day.
It's normal for a company's share price to drop on ex-dividend day because the stock is no longer trading with the next dividend payment attached.
That means it's inherently less valuable to investors today than it was yesterday.
With the August earnings season done and dusted, South32 shares are among 23 ASX shares with ex-dividend dates this week.
The ASX 200 mining share will pay a fully franked final dividend of 2.6 US cents per share on 16 October.
Using today's exchange rate, that translates to 3.9 AU cents per share.
South32 will announce the exact amount in AU currency in due course prior to the payment date.
Based on today's South32 share price, the miner currently has a 12-month dividend yield of 3.6%.
These days, that's actually above average for an ASX 200 share.
As we've reported, Betashares estimates that the ASX 200's trailing cash dividend yield is now tracking at 3.34% per year.
The main reason for the ASX 200 dividend yield dropping below its long-run average of 4% to 4.5% is lower dividends from banks and miners.
You can read about the 2026 forecast for dividends from the major ASX 200 banks and mining shares here.
A recap on South32's FY25 results
South32 reported an 8% year-over-year fall in underlying revenue to US$7.61 billion for FY25.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 7% to US$1.93 billion.
The underlying EBITDA margin improved by 3.5% to 26.3% in FY25.
South32 managed to lower its costs by US$579 million last year.
The miner's total cost base was US$5.44 billion in FY25.
After the FY25 report, broker Macquarie downgraded South32 shares to a neutral rating with a 12-month price target of $2.70.
Macquarie said:
We downgrade S32 to Neutral on a weaker near term earnings outlook and NAV declines across the portfolio.
While guidance was disappointing, we see some potential in Cannington's reserve conversion and life extension strategy.
There is no price-sensitive news from South32 today.
Yesterday, the miner announced that it will host its annual general meeting (AGM) on 23 October in Perth.
South32 share price snapshot
The South32 share price has fallen 19% over the past 12 months.
This compares to an 8% bump for the ASX 200.
