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Vale S.A. Message Board

  • holdenmijunk holdenmijunk Oct 7, 2013 10:20 AM Flag

    Just a little lesson folks

    Dont forget that the ex div date is the 17th...you must be on the books 3 days prior..(to be safe) So that would cause an uptick from the 14th up to the 16th. Now!! Typically on the ex div day (the 17th) the price if that stock is adjusted lower to cover the DIv. So we can expect a drop of .44c on the morning of the 17th. That is common ...not 100% but more often than not. So do your math carefully and play the div right
    Hope That helped some.

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    • Thanks all... I really expected to be called every name in the book today...Good to know so many people just want to help get the right info out. My biggest lesson here is that I should have sold at 16.84.... lol ..
      I am more confused by this stock than ever...been holding for a good 7 months and planned for this DIv date... my plan is not paying off...

    • You are confusing the ex-dividend date and the record date. When a company announces the ex-dividend date, you only have to have execute the trade on the stock by the end of the prior trading day. The purchase will still take about 3 days to settle. When a company refers to the record date, then, the ex-dividend date is generally 3 days prior to give your purchase time to settle.

    • Ex dividend date is the 18th,and you can buy the stock right up until the 17th and qualify for the dividend!! Settlement dates have no bearing on you qualifying for the dividend!!!

    • "Dont forget that the ex div date is the 17th...you must be on the books 3 days prior..(to be safe)"

      Wrong, you must purchased the stock by the 16th and be on the record on the 21st.

      • 4 Replies to ram0nr0j0
      • Sorry ram...Technically you are correct.... I asked another source that said ...no way should you have to buy 2 days prior to ex date... the 16th is the must own date period..

      • Ok so ...Just went back over this again....".you must be on the books 3 days prior..(to be safe)"
        TO BE SAFE was the key... I know u need to buy on the 16th ... but it was recommended to be in around 3 days prior to make sure you are on the record... so ...technically all I said was do it one day earlier... . Not sure why so many recommend buying it earlier.... I have never personally experienced missing the books...Anyone else ever have that happen?

      • Maybe I read that backwards?

      • Hmmm interesting.. What I stated is what I was always taught and there are a dozen articles and books that state the same thing I said.... Where did you get your info from? Here is one qoute...
        ere's how to determine the must-own date for any dividend, so you'll never be confused by this important question again.

        First, when most dividends are announced, the company generally says it is "payable to shareholders of record" on a certain date. This is useful information, but investors often confuse the record date as the cutoff to receive the dividend.

        The difference is that stock trades actually settle three days after the fact, even if you're a frequent trader that buys and sells the same name several times a day. Similarly, the ex-date is two trading days before the record date, so another way to look at the must-own date is the day before a stock goes ex-dividend.

        So now that we know to subtract three days from the record date in order to determine the must-own date, how do the dynamics of the dividend actually work?

        Here's an example: Let's say ABC Corp., which is trading at $10 a share, declares a regular quarterly dividend today of 10 cents a share (4% yield), payable to shareholders of record on Thursday, Dec. 13. Looking at the calendar, we can determine that the ex-date will be Tuesday, the 11th and the must-own date will be Monday, the 10th. Let's also assume the company is concerned about the pending fiscal cliff and declared the payout for Dec. 27, before any potential tax changes in the new year.

        Here's how the dividend works: Only investors at the close of trading on Monday, the 10th will receive the dividend. This is the must-own date.

        You could have owned ABC Corp. for five years, but if you sell it on the must-own date, you will not receive the payment. On the other hand, it's possible to buy ABC shares in the final minutes of trading on Monday, the 10th and receive the full dividend.

        At the open of trading on the ex-date, Tuesday, the 11th, ABC shares will be adjusted 10 cents lower. This is to reflect the dividend being taken out of the stock, but there's no penalty because of the adjustment.

        With that in mind, an investor can technically buy ABC at 3:59 p.m. ET on the 10th and sell it at 9:31 a.m. ET on the 11th and still receive dividend in their account on the 27th.

 
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