In many cases the aquiring company will assume the dividend payout. Of course not all.
Does anyone know if that will happen as the .08 cents a year for the PXD stock is absolutely terrible.
I see the amount for the exchange was increased.
If you throw up a chart of PXD and compare it to PSE it is a mirror image. The outlook for PXD looks good
with a 200+ price target.
Your PSE units will be exchanged for .2325 shares of PXD and you would then get the current rate of PXD dividends (.08/yr or whatever). PXD is not a dividend play so if that is what you want then the logical course is to sell PSE before the merger and re-invest in some other yield play. That is what I will be doing.
On the other hand, PXD has been the top performing energy stock over the last year and I think in the top 10 of all stocks. Price targets are in the 200's. So hold on to your PXD if you want capital gains.