Intelligent answers only please. Today is ex-div day, My Question is, I have some stocks in the D.R.I.P. So will my drip shares value be the same as close today or when it is payed to my drip accopunt? Anyone? Thank You.
Annaly Website explains how the drip plan is handled. When and how the price of shares purchased is determined etc...etc.. Under "Investor Relations", "Drip Information", "Frequently Asked Questions".
"DRIP price is the weighted average price traded Jan 30,..."
Looks the most logical unless "the purchase is based on today's (ex dividend date) closing price" wherein the purchase of shares is actually made today, or treasury shares are distributed, not shares purchased on the open market. If nly is higher later and they have to purchase shares at a higher price but distribute them at today's price, who makes up the difference? Why, nly of course. You want nly playing the market itself or only the officers playing with their own funds?
Unless russia drops an a bomb on nly's hq befre market close today, my remaining options expire worthless. Cost some bucks for the education, and reinforced education, but worth it. For the former, keep the strangle plays simple, stupid. For the latter, tis better to sell and receive premium cash than it is to buy and give premium cash.
The dividend is paid on January 31. (The ex-div day is the day which determines who gets the dividend, not the day on which the div is actually paid). Logically, the drip shares would be bought on Jan 31 and therefore at a Jan 31 price. But it isn't a simple question, and I don't know the correct answer.