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DIVIDEND THREAD with Ex Dividend date ($)

  • 14-08-2009 1:11am
    #1
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭


    Know the rules for Dividends

    If the stock was purchased on or after the ex-dividend date (the first day the stock trades without the dividend), then you will not be entitled to receive this dividend payment.

    Personally: I am not 100% but almost 80% that you can sell your stock from ex dividend date onwards.So you would only have to hold the stock for one night and sell if conditions are good.

    Most of these are due this month..

    I have provided one example of a stock that has just paid a dividend, It's ticker GLS. You can see that its share price rose the day of the ex dividend and then 2 days later declined back again. This shows there is more than just the dividend to capitalize on.

    PDL BioPharma Inc. PDLI
    Declared Date 06/11/09
    Ex-Dividend Date 09/15/09 Amount 0.5000

    Federal Realty Inv... FRT
    Declared Date 08/06/09
    Ex-Dividend Date 09/21/09
    Latest Indicated Dividend Amount 0.6600

    Northrop Grumman... NOC
    Declared Date 07/17/09
    Ex-Dividend Date 08/27/09
    Latest Indicated Dividend Amount 0.4300

    United Technologies... UTX
    Declared Date 06/11/09
    Ex-Dividend Date 08/19/09
    Latest Indicated Dividend Amount 0.3850

    Genesis Lease Limited...GLS
    Declared Date 08/03/09
    Ex-Dividend Date 08/07/09
    Latest Indicated Dividend Amount 0.1000

    Public Storage PSA
    Declared Date 07/17/09
    Ex-Dividend Date 08/27/09
    Latest Indicated Dividend Amount 0.4300


Comments

  • #2
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    Theoretically the share price should fall by the gross amount of the dividend on ex-date.

    This is obviously not always the case, but from a valuation perspective this is what should happen.

    Ex-date should not matter when trading though, you should be able to buy or sell on/before/after ex-date.


  • #3
    Blackjack
    Registered Users, Registered Users 2 Posts: 3,628 ✭✭✭Blackjack


    Generally, if you sell on Ex date, you are entitled to the Dividend.
    Exception to this is Columbia.

    Japan pays something like actual holder at record date.


  • #4
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭pirelli


    soddy1979 wrote: »
    Theoretically the share price should fall by the gross amount of the dividend on ex-date.

    This is obviously not always the case, but from a valuation perspective this is what should happen.

    Ex-date should not matter when trading though, you should be able to buy or sell on/before/after ex-date.

    Then you wont get the dividend :(

    UTX has an ex dividend date of 19th August so if i want that dividend i must buy before close tonight and hold until tomorrow, I could sell immediately tomorrow morning but usually the share price will raise the next day to fill the gap.


  • #5
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    I'm not really following you Pirelli.

    If you buy a stock on ex-1, yielding 5%, take the 5% dividend and the stock drops by 5% and then you sell you will end up all square.

    Have you tested your theory that share price rises the day after ex-date. Do you have any stats on it?


  • #6
    soddy1979
    Registered Users, Registered Users 2 Posts: 284 ✭✭soddy1979


    I know dividends are attractive to buyers. And that is the whole reason the stocks value should drop on ex date.

    Ex date = When the stock is quoted ex-dividend.

    Hope that makes sense. If the stock rises on ex-date it is not due to the fact that you are no longer entitled to the dividend.


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  • #7
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭pirelli


    soddy1979 wrote: »
    I'm not really following you Pirelli.

    If you buy a stock on ex-1, yielding 5%, take the 5% dividend and the stock drops by 5% and then you sell you will end up all square.

    Have you tested your theory that share price rises the day after ex-date. Do you have any stats on it?

    Google any of these.

    Eli Lilly & Co. Public, NYSE:LLY

    Genesis Lease Limited (ADR) ( GLS)

    UTX

    They have all received dividends recently.

    Dividend stocks are popular and usually a dividend stock is attractive to buyers.I do not have any stats on it but there are risks that there is a slight correction ongoing which might delay your selling or some bad NEWS or poor earnings report. So a quick check of the fundamental & technicials and scope of news should be sufficient.

    I would look at the companies and ask myself would I invest in this company and if the answer is yes this is a great company like LLY then i might take the risk.LLY is a great stock and worth getting a dividend from but i have do not statistics and nor can i prove it works and yes i suppose its like crossing a busy dual carriageway but at least it's possible that that's why the chicken crossed the road.


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