Record date for the next KMR stock dividend is April 29, which means that the "ex-dividend" date is April 25. Would it be correct to expect that the share price will adjust down by $1.30 on that day, just the same as if it were paying out a cash dividend?
This just came in for KMP. Kinder Morgan Energy Partners, L.P. (NYSE: KMP) will trade ex-dividend, for its quarterly dividend of $1.30, payable on 5/15/13. As a percentage of KMP’s recent stock price of $92.06, this dividend works out to approximately 1.41%, so look for shares of Kinder Morgan Energy Partners, L.P. to trade 1.41% lower — all else being equal — when KMP shares open for trading on 4/25/13.
KMR shareholders are paid in cash by KMP. It is just that shareholders of KMR have elected to have that cash reinvested in shares so KMP can retain the cash. If all other things remain equal (ceteris paribus) from the close, to the next days open. Then an ex-dividend security should start trading minus the cash value of the distribution.
If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend. The share price is expected to adjust down only on te open. After that anything can happen.