im confused is this stock going to split 3-2 in april or is it just the dividend that is going to change .? can some answer this question for me please. is this a good long or hold time for this stock.? as you can tell im new to the market..any help would be great..
Very good timing for you! And for me - about the same timing. I bought 50 for my daughter at $29.89 and am so pleased I could pop!!!!!!!!!!!!!!!!!!!!! Am thinking of buying some for myself now after freeing up some cash, but...am not sure about the price now since it has gone up. Still, it is nice about the split, although that does not guarantee the price will go up, just that we will get 1/2 again as many shares - her 50 will become 75, etc...I put a 'hold' rating for sure, but it could be 'hold to buy'... Jazzlady
Not for long. Bought some in August of last year and some more about two months ago. Made a little on the first and have lost a little on the last purchase. I have been impressed with the local store and its management. We don't have an Office Depot or Max nearby so Staples has no real competition, but feel they will do alright anywhere. I think (hope) you made a wise investment.
I believe the effective date of the 3 for 2 split or 50% stock dividend is April 15th. On that date the stock will become lower in price proportionally with the increase in the number of shares of the stock you will own. If you own 20 shares worth 30 each you will then own 30 shares worth 20 each. Since you have not won or lost anything, the tax man couldn't care less.
What is a 3 for 2 stock split. Usually with a stock split the stock moves lower to adjust for it. Staples did not do this. A two for one is a 100% stock dividend. There no tax to pay unless you sell . Right . Is there a tax to pay with a 3 for 2 split?
Call it anything you like split or dividend, it's all the same. I used to own a company stock which in good years gave out a 5 or 10 percent stock dividend. In bad years nothing. Sort of like a Christmas bonus but it wasn't because the value of your stock went down by a comparable amount. Just don't confuse it with a cash dividend which in Staples case is offered annually. For that , you will receive a check (or dividend re-investment statement). At the end of the year you will receive a 1099 DIV for your tax purposes. Many other stocks have it paid quarterly. There are no tax consequences with a stock split or stock dividend. You simply have more stock worth less money for each share. On the question of when you can buy to receive the additional shares, if you pay the pre split price, you will receive the additional shares. If you don't, you won't.
Yes, I did receive a 'stock dividend' before, even from this company. But, since our elected hotshots in Washington are always playing with the rules, I simply wondered if there might be some advantage to having a 'stock dividend' instead of a stock split.
From the IRS publication 550 (2004), Investment Income:
Distributions of Stock and Stock Rights
Distributions by a corporation of its own stock are commonly known as stock dividends. Stock rights (also known as �stock options�) are distributions by a corporation of rights to acquire the corporation's stock.
Now the key phrase:
'Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return.'
That is followed by a lot of rules on what IS taxable.
You might like to read this page if you have insomnia:
I tried to do that too, but got a lot of 'missing messages' when I kept going backward. I guess Yahoo must have been doing some maintenance or updating, because the messages are back.
Anyway, whether it's called a split or a dividend doesn't appear to make much difference. Either way we get 3 shares for every previous 2. Might be tax consequences though, I don't know.
Anybody else have info? Thanks in advance.