Insights

Why the BHP (ASX:BHP) share price is down 7% today

The iron ore major is deep in the red on Thursday
The post Why the BHP (ASX:BHP) share price is down 7% today appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price is currently the worst performer on the  S&P/ASX 200 Index (ASX: XJO) on Thursday.

At the time of writing, shares in the iron ore major are down 6.73% to a 9-month low of $42.00.

Why is the BHP share price free-falling?

The good news is that the decline in the BHP share price today is largely driven by its shares trading ex-dividend.

When a share trades ex-dividend, it means that new holders will not be eligible to receive an upcoming dividend payment.

A company’s share price typically falls on the ex-dividend date to the amount of the upcoming dividend.

About the BHP dividend

Investors who held BHP shares before the ex-dividend date will be eligible to receive the company’s final dividend.

BHP will be paying its shareholders a fully franked US$2.00 per share. This equates to $2.72 at current exchange rates.

The dividend will be paid out to eligible investors on Tuesday, 21 September.

At the time of writing, the BHP share price has declined $3.06. This means that about 88% of its decline is attributable to the dividend.

What else is weighing on BHP?

Broader market weakness and declines across the mining sector could also be driving down the BHP share price.

The ASX 200 is down 0.91% to 7,458.3 with most sectors in the red.

In addition, the S&P/ASX 200 Materials (INDEXASX: XMJ) index is the worst-performing sector on Thursday, tumbling 2.70%.

BHP share price enters negative year-to-date territory

BHP shares hit an all-time high of $54.55 on 30 July, representing a year-to-date return just shy of 30%.

They are now down 2.35% this year following rapidly deteriorating iron ore prices and today’s ex-dividend.

There are increasing concerns that iron ore prices might remain subdued in the short-to-medium term as China demand eases and global supply accelerates.

The post Why the BHP (ASX:BHP) share price is down 7% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 midday update: BHP sinks, Flight Centre expansion

Here’s why the BHP (ASX:BHP) share price is down 7% today
5 things to watch on the ASX 200 on Thursday

ASX 200 company bosses lobby for reopening plan

BHP (ASX:BHP) share price struggles as nickel battle heats up

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!