I don't know why, because the pay date was supposed to be in the future, but E*Trade is already showing exactly .049 shares of SBY per share of TWO in my account.
The last PR from TWO, on 3/25, said
"Two Harbors stockholders will receive approximately 0.049 shares of Silver Bay common stock for each share of Two Harbors common stock they own of record as of April 2, 2013, subject to the liquidation of fractional shares for which stockholders will receive cash in lieu.
The NYSE has established March 28, 2013 as the ex-dividend date for the Stock Dividend. The Stock Dividend is payable on or about April 24, 2013."
So I think E*Trade may have shorted the shares to me just to keep me from running for the phone when money disappeared from my account. They included the fractional shares, which the company said it would liquidate and pay in cash.
The $0.07 pop in SB after-hours won't cause any significant change in the order repricing for the morning, but it's a good sign that these shares may be worth hanging onto for a little while.
Some brokers - e.g. Interactive and others, accrue dividends and post the accrual values on ex date.
Others - e.g. Fidelity, don't do that.
I have shares of TWO in both Interactive and Fidelity and the former shows them and the later doesn't. The accrual represents the legal entitlement of the owner at ex date.
Thus is my IB account I'm showing the increased value of my 490 SBY shares due to today's trading as well as the initial value.
that's a major inconsistency. i get the idea behind enabling me to trade the shares immediately without feeling like i'm shorting them. and i get that it allows the true value of my account to remain correct. but it doesn't reflect the reality of possession.
and, even bigger, E*Trade does not do the same with cash dividends. so all those things it's trying to smooth over, it only smooths over for share distributions.
it'd be nice if it also warned me that it was going to do these things. but it's busy trying not to go bankrupt playing with other people's deposits, so i'll give it a pass. this time. at least it's a feature, not a bug.
Mine are there also... I'm confused however.... If SBY shares were to be a dividend, why would the TWO price be reduced by the value? To me, it acts more like a stock split rather than a dividend as my net gain is 0... Am I missing something?