Criminals called "Hedge Funds" target stocks that pay large dividends, and immediately short them the second they trade ex-dividend, figuring (right) that there is no incentive to buy the stock, after the dividend is paid.
I agree! The company continues to perform nicely and the dividends are obviously great! Been holding it for years.
By the way, I think the continued drop beyond $3, is due to selling by people who just bought it for the div.
Today is the ex-div date. The 15th is the "record" date. Remember There is a 3 day delay between trade and settlement. So if you bought the stock on the 12th, you won't be on the record for owning it till the 15th. If you buy stock today (13th), you are not on the record for owning it till the 16th, and you miss the div...here's a nice link that lists all the dates:
The stock exchange deems the opening bid to be previous day's closing price less amount of the dividend, so in this case $56.07 (yesterday's close) less $3 (value of the regular divivdend plus the special dividend). My question is why today - exdividend date is Thursday, not today.
No...yesterday the "market" valued the stock at $56. This valuation consisted of a $3 cash (coming soon) and an underlying $53 stock valuation. So today, the $3 cash dividend is stripped from the stock (and sent to yesterdays holders), and voila the price is $53. There is no indication of "dumping", as the value of the underlying stock did not drop.
So after the close of that day, everyone dumps because they are on the books to receive the dividend?
The stock is trading ex-dividend. If you owned the stock yesterday, you'll be getting a $3 dividend (yah!). The dividend will be paid on the 27th, to everybody who owned the stock yesterday. This is a combination of a special dividend and regular dividend.
I'm a newbie, so maybe I dont understand, but the stock closed $56.07 yesterday and I wake up this morning and its at $53? Can someone explain? After hours trading?
I agree...special dividend is missed by many people. The total yield is over 6%. This company has 0 debt. Management is cautious and is growing slowly. Great stock.
I have been in Bkl for about five years. Hasn't done much on price but each year in addition to the regular div they declare a fat year-end. $250, $2.50, $4.50, $1.50 and $2.77. As for benefiting from low oil prices keep in mind that many of their stores are in oil patch states. But I live off divs so that is more important to me that price appreciation.Stocks can go up and down but divs are forever.
Nice special Dividend $2+ a share. I'm starting my DD on BKE and might get in before the X date and hold for 6-12M. With gas prices low, I'm betting on consumers spending more at retail thinking they have more money in their pocket with the low gas prices.
Any thoughts on BKE from valid message board members? Opinion on this entry point? Any positive feedback is greatly appreciated. Thanks
$2.00 they used to do it before the end of the year, but changed to after the first last year. Maybe to avoid taxes for shareholders (the CEO is a big one).
-Same BS message posted 2K+ times on EVERYTHING to get attention to HIS BS Pennystocksweekly publication.