"Reports have been out for some time that ex div date would be 1/30."
No, there haven't. Jan 30 is the record date, not the ex-date. Record date and ex-date are not the same thing.
"Perfectly reasonable for people to buy at a lower price before EOD 1/30"
It's reasonable only if they understand that they won't get the dividend.
"what the heck is all this selling on 1/28? "
It's called the adjustment for the shares no longer being eligible for the dividend. Just like on every ex-date for every stock that ever pays a dividend.
"Can we now expect a $5.77/share price drop on 1/30 when the div is earned?"
The better question is: Will you study up on how dividend dates really work instead of being totally confused about the process?
"Did I get in or did I screw up royally?"
Studying up didn't help, huh?
You'll get the dividend but that doesn't mean you didn't screw up. Because the stock price adjusts down for the dividend on the ex-date, buying a stock just to get a dividend is pointless. Whether or not you screwed up will be determined by the future price of the stock.
"IMO_HUGE Buying Opportunity: You have 2 more Days!"
Your opinion is wrong. To be a shareholder of record on Jan 30, you had to buy the stock no later than yesterday. That's why today is the ex-dividend date.
Thanks for trying, though.
"I'm totally new to the stock market"
And this episode should show you that Yahoo message boards contain as much confusion as clarity.
"lost about 20% of value, didn't it?"
No, it didn't. You have to add back the value of the dividend to any shares bought before today.
colinelbasani, if you'd do a google search for "Understanding Dividend Dates" you find several excellent websites that explain how and why dividend dates work the way they do. It's about a thousand times faster than trying to find the answers on a message board. Especially this one.
"This is just the computer trading mistakenly treats the dividend deduction from the stock price as technical problem and triggered some stop loss selling."
No, this is just the standard repricing of a stock that no longer carries the right to the dividend. On the ex-date, the price of all outstanding stop orders are automatically reduced by the exact amount of the dividend (unless placed with a Do Not Reduce restriction, which very few are), so stop losses are not triggered by the price adjustment on the ex-date.
Again, this is all standard dividend date stuff. Obviously many posters here don't have a clue as to how dividends work.
"They sold and are going to miss the div."
No, sellers today will not miss the dividend; the buyers today are the ones who will not get the dividend. That's the very purpose of the ex-date, to be the first day that the right to the dividend does not transfer with the sale of the stock.
"because you have to own on the 30th"
No, you have to be a shareholder of record on the 30th. Owning the stock and being a shareholder of record are two different things. Anyone who bought before today and sells today will indeed be a shareholder of record on the 30th, simply because today's trades will not settle until Feb 2.
"why the stock is tanking way over the 5.77 div."
Usually it's because a stock has traded up on the announcement of the dividend. The simple announcement of a dividend doesn't make a company worth any more than it was the day before the announcement. The perceived overcorrection on the ex-date is simply the overenthusiasm of the the dividend announcement being washed out.
"You read an article that is incorrect. I saw that one too."
It's not incorrect to say that the dividend goes to shareholders of record as of Jan 30. The record date of Jan 30 is what makes Jan 28 the ex-date. You need to take into account the three day settlement period of stock trades.
No, he's right.
"You need to be shareholder of record on January 30th to get the dividend."
Anyone who bought yesterday will BE a shareholder of record on Jan 30. If you sell today you will still be a shareholder of record until the trade settles on Feb 2.
This is all fundamental dividend date stuff.
"my broker told me you have to buy 2 days prior to ex-dividend day to receive the divi"
No, he probably told you one day before the ex-date, not two.
"Yes, today is the ex-dividend date"
" the last day to buy the stock to capture this dividend gain."
Wrong. The ex-date is the first day the buyer does NOT get the dividend. That's why it's called "ex."
"Seattle is going to get killed in Phoenix."
You're absolutely right, camdahscam. Seattle stunk the place up and are in for the same kind of drubbing they got last year in the Superbowl. Peyton Manning and the highest scoring offense in NFL history mopped the turf with Seattle last year, just like everyone said he would.
It wasn't a lemon, it was just worn out. I wasn't criticizing it. Walking one third of the way home after midnight was a lot better than walking all the way home after midnight. Besides, I still have the rod it threw. It's kind of like a trophy.
"The record and ex dates seem related by the T+3 settlement but aren't officially."
For normal dividends. the record and ex-dates are indeed officially related by the T+3 settlement period.
"The rules set most div ex dates to be two business days prior to the record date, without explanation."
Of course there's an explanation. Because it takes three days to settle a trade, to be a shareholder of record on the record date, you have to buy the stock three days before the record date. That means two days before the record date is too late to buy to get the dividend, so is the first day to trade without the right to the dividend, also known as the ex-dividend date.
It's as simple as that. No mystery about it.
I agree. I owned a Studebaker once. For several hours. It was a 1962 Studebaker station wagon with a flathead six. Somebody had cut off the roof, so the hood was the highest point of the car. I needed a ride home one night so I paid $20 for it. It got me two-thirds of the way home before it threw a rod. Great car.
"I suspect that by having energy in ones name gets you tarred"
That would only apply to the oil companies, right?
Wouldn't the electric companies get fried? And the solar companies get baked?
I suppose the wind power companies would get blown away, wouldn't they?
"Guess it really was that simple."
Yes, it was. Just like the dividend that's going to be taken back out of your account. But at least you made three cents, so it didn't cost you anything to learn.
"Too funny...bought 17 December @ $1.31, sold 30 December @ $1.34 and received the $0.85 dividend."
It's not going to be quite as funny when they take the $0.85 back from you. Because this dividend used a deferred ex-date (ex-date being after the record date instead of before it), all STRI shares traded beginning two days before the record date (record date was Dec 26) and last Friday, which includes the shares you sold on Dec 30, were sold with due bills attached. Those due bills obligate the seller during that period (you) to forward the dividend to whoever bought your shares. So within a week or so, your fat dividend will become someone else's fat dividend.
That's all standard procedure for dividends amounting to 25% or more of a stock's price. Nothing unusual about it.