In this case, I'd think DEO should benefit also.
@@@@@French spirits maker Pernod Ricard SA ( PERNOD RICARD) has forecast a recovery in sales in its second-biggest market China, dogged for years by a clampdown on the purchase of expensive gifts such as whisky and cognac, helping send its shares to a 10-month high. The world's second-biggest spirits group behind Britain's Diageo Plc ( Diageo plc) said on Thursday it expected sales to gradually improve this year, notably in China, offsetting slow growth in its top market the United States.
I thought they had sold the real estate to a REIT but then did a leaseback and continue to operate the wineries.
I didn't see your last post until now. Why would you believe that after making a post I'd watch the screen until you responded? You've been posting only once a day. You really think I'd sit waiting eagerly for your reply before doing anything else? How big is YOUR ego?
I don't much care how confused you are. I was posting explanations and clarifications for other readers who may have been suckered by your ignorant posts.
Hey dude, I admitted you are right. What more do you want? Jeez, talk about having a chip on your shoulder.
From Understanding Dividend Dates:
"The payment of a dividend via due bills is quite unlike a normal dividend payment. Shares that are purchased after the record date but before the deferred ex-date (the due bill period) are traded with a due bill attached. The chain of events that begins on the payment date works like this: The dividend is first paid to the shareholder of record, then, on the due bill settlement date, which is commonly two trading days after the ex-date, the dividend is withdrawn from the account of the shareholder of record who sold the shares during the due bill period and is then paid to the shareholder who bought the shares during the due bill period.
The dividend is paid to all shareholders of record first because that is the only information the company has on who is eligible for the dividend. The due bills are then executed by the stock brokerages of the buyers and sellers during the due bill period. The company does not participate in the due bill process."
Indeed you are correct. Thanks for the post. PS: I don't refuse to recognize anything... it is simply that this matter is not all that important to me so I don't care to read about it in detail.
"You have it completely backwards"
No, blackoutbuzz, it is you who have it wrong. And your efforts to pretend you are right are leading you further from the facts. This statement of yours proves you have it backwards: "That 'due bill' you chose to emphasize the importance of is obviously a mechanism to ensure that the divie is addressed in the name of the shareholder on the Record Date, and not the holder of the ADR"
In fact, the purpose of the due bill is to assure that any shareholder of record who sells their DEO shares before the ex-date will be obligated to forward thew dividend to whoever holds the shares as of the close of trading on the day before the ex-date.
Ah, and then you try to justify your confusion by quoting the SEC's explanation of how normal dividends work. Because you are so shortsighted, you read only the part of the SEC's explanation that applies to normal dividends and called it quits after that. Well, right below the part you quoted is the explanation of due bills that applies in this case. It specifies stock dividends but the same rules apply to condition dividends and to dividend that represent 25% or more of a stock's trading price. This is what you missed and refuse to recognize:
[in cases of a deferred ex-date] "If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."
Do yourself a favor, blackoutbuzz, and do a google search for "deferred ex-date" and study up on what you don't understand.
--- It's not the record date that determines who gets the dividend, it's the ex-date.---
Sheer nonsense. You have it completely backwards. It is precisely the Record Date that determines eligibility. The company looks to its Shareholder Register on the Record Date to identify the shareholders who will receive the divie. The ex-date is related to how long it takes for exchanges to process stock transactions (clearing and settlement).
If you are NOT REGISTERED in the company ledger on the Record Date, you are NOT eligible to receive the dividend, plain and simple. That 'due bill' you chose to emphasize the importance of is obviously a mechanism to ensure that the divie is addressed in the name of the shareholder on the Record Date, and not the holder of the ADR on the day of the AGM (the conditional date).
SEC ---- When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information. Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date.
"Why? Because, the RECORD date is IDENTICAL for both the US-ADR and LSE-listed stocks"
It's not the record date that determines who gets the dividend, it's the ex-date.
"in effect both have the same ex-dividend date"
Not in reality and not in effect. The ex-date for the UK shares has passed while the ex-date for the ADS won't come until next month.
"If you are not the ADR shareholder of record on Aug 15 you are not entitled to receive the dividend."
Not true. Again, it is the ex-date that determines who gets the dividend, not the record date. The ex-date is the first trading day that a purchase of the stock does not include the right to the dividend. With the ADS having a later ex-date than the UK traded shares, the value of each is not the same until the ADS ex-date comes around.
Pay particular attention to the part of the clarification issued by Citi Depositary Receipt Services that says, "The New York Stock Exchange has announced that Diageo American Depositary Shares will carry due bills from August 13, 2014 through September 19, 2014 pending approval of the dividend at the Company’s Annual Meeting."
You read it, you copied it and you pasted it into your post. The one thing you didn't do is understand it. It is the due bills that you are overlooking and until you understand the due bill process, you will continue to be wrong. In effect, blackoutbuzz, you don't know what you're talking about.
Why? Because, the RECORD date is IDENTICAL for both the US-ADR and LSE-listed stocks. If you are not the ADR shareholder of record on Aug 15 you are not entitled to receive the dividend. So in effect both have the same ex-dividend date... it's simply that the ADR divie is 'conditional/' on approval at the AGM and payment is delayed until such time. Refer to the information below from Citi Depositary Receipt Services
Depositary Notice to Holders of American Depositary Shares
evidenced by American Depositary Receipts of Diageo plc –
ADR Record Date August 15, 2014
ADR Payment Date October 7, 2014
Date: August 11, 2014
Diageo plc has declared a dividend payable on October 7, 2014 to holders of record August 15, 2014.
Please note that payment of this dividend is subject to shareholder approval at Diageo’s Annual General Meeting scheduled for September 18, 2014. The New York Stock Exchange has announced that Diageo American Depositary Shares will carry due bills from August 13, 2014 through September 19, 2014 pending approval of the dividend at the Company’s Annual Meeting. Please be advised that any issuances processed during this period will be settled via DWAC.
"I'd expect the US-listed ADR to track price movements of the primary LSE listing"
Why would you expect one to track the other when one is ex-dividend and the other isn't? They're no longer equal at that point, one representing more value than the other, the difference being the exact amount of the dividend.
I was not aware of that restriction on US listings thanks. In any case, the stock went ex-div on Aug 13 in UK and the stock price on the LSE would drop to account for that. I'd expect the US-listed ADR to track price movements of the primary LSE listing and any FX shifts, so I stand by my original claim.
I am late to the conversation, but just looked at the chart and a few technical indicators. My take is that the $116 range was the bottom for a while. And my crystal ball says that it will go back up to the $125 range - 200 day average. So, if you want DEO maybe starting a position in the $118 area is not so bad. With a $7 up swing, then reassess. Good luck.
"dividendinvestor has aug 15 as record date. That's unusual to be a month before ex
The reason the ex-date for the ADS is Sept 22 is because this is a conditional dividend. It is dependent upon shareholder approval at the company's annual meeting on Sept 18th. No matter how likely the approval, the NYSE doesn't allow ex-dates to be set before the conditions of a conditional dividend have been met.
"Diageo's website says Aug 13"
That's for the UK traded shares only. The ex-date for the U.S. ADS is Sept 22.
"Dividendinvestor website has sept. 19 as ex-div."
They missed it by one business day. Sept 19 is a Friday and is the last day to buy the stock to qualify for the dividend. The ex-date is Monday, Sept 22. Look for a clarification issued by Citi Depositary Receipt Services on August 11th.
"Because it dropped heading into ex-div date."
No. The ex-date for the Diageo American Depositary Shares is September 22. The August 13th ex-date is for the UK traded shares only.