"are you saying you do not have to wait the 3-business day for settlement?"
"I think you are wrong since I have bought stocks a day before ex-dividend and did not receive the dividend due to the 3-day settlement time."
No, you didn't. You're confusing the ex-date with the record date. If a stock is issuing a normal distribution and you buy it one day before the record date, you will miss the distribution. But if you buy the stock one day before the ex-date, you WILL get the distribution. That's why it's called the ex-date -- because that's the first day that the stock doesn't trade with the right to the distribution. Ex-dates are real-time dates -- buy before the ex-date, (even one day before), and hold until the ex-date, and you get the dividend. With normal distributions, the ex-date takes into account the three day settlement necessary to become a shareholder of record on the record date. That's why the ex-date is normally two days before the record date.
However, spinoffs do not follow normal distribution rules, having the ex-date after the record date. In that case the ex-date does not take into account the three day settlement period to become a shareholder of record because the record date comes first. But the ex-date still determines who gets the distribution, which is the very purpose of the ex-date -- buy before the ex-date (even one day before) and hold until the ex-date and get the distribution.
This is all standard procedure. Nothing unusual about it.
"The date is still open, just need your shares cleared before the announcement"
No, you just need to buy before the ex-date and the ex-date will be after the announcement, not before it.
Why should you have bought yesterday? The dividend is twelve and a half cents. Today the stock is down 17 cents. Why would you want to have paid a higher price than the dividend would've offset?
"Funny, I thought they released the dividend to be for shareholders on record for the 25th though my brokerage is showing it goes ex today."
A record date of Nov 25 makes the ex-date Nov 21. What's funny about that?
"So in other words, if the stock is owned on nov. 20 that same owner must hold the stock until at least nov. 24 to be eligible for the monthly dividend ?"
"or do they just have to be the owner of the stock at the end of the day on nov. 20 ?"
No. You'd have to be an owner as of the close of trading on the 19th, not the 20th.
"special dividend stocks have some strange rule about the ex-date and record date"
No, not all special dividends have special rules for the qualifying dates. This one does not. It will work the same way normal dividends do. Being a self-proclaimed psychic, you should know that.
"Most of them go back to where they were soon after opening and just looks like a temporary dip."
Only when the dividend is less than the normal daily trading range of the stock. $16.50 is somewhat above the normal daily trading range of this stock.
"Wish I had more thumbs!"
So you can cover both your eyes and your ears? After all, you wouldn't want any facts to get in the way of your dreams of riches, would you?
And why do you suppose the company filed to list VCIG before formally declaring the distribution and having the exchange set the ex-date?
Because it's so thick, I'm sure your ignorance is all warm & fuzzy, but it doesn't serve an objective investor (which you are definitely not) well.
jam1061 posts naive and impossible speculation on the spinoff and gets multiple thumbs up, while I post a procedural fact about the spinoff and get a thumbs down (with many more to come, no doubt).
The ignorance on this board is not only thick, it's hilarious!
Instead of waiting to see who's right, why don't you take an active approach to your investments and study up on how spinoffs work, as required by FINRA rules? Wouldn't you rather KNOW the procedure instead of wondering how it will turn out?
"Also, feel confident the ex-dividend will be established after Thanksgiving."
The ex-date won't be set unless and until VCIG is trading on a when-issued basis.
But by all means, jam1061, keep on speculating. If you do it often enough, odds are you'll get one right.
"Completly agree jam."
He states a technical impossibility and you agree with him? Wouldn't you be doing yourself a favor to study up on how spinoffs REALLY work instead of agreeing with Pollyannna-ish wishful thinking?
"it is very possible the dividend will be valued at one penny on ex dividend date but the stock might open at 50 cents on first day of trading"
No, that's not the way spinoffs work. VCIG will be trading on a when-issued basis before the ex-date, and the closing price of the when-issued trading on the day before the ex-date will be the amount by which MCIG will be reduced on the ex-date, so your speculation is misplaced.
What do you mean, why isn't it way up? It was trading around 70 when the company announced its intention to pay the distribution (Oct 23). Yesterday the company simply made it official by declaring it.
Besides, running up the price of a stock just because it's going to pay a big distribution doesn't make any sense anyway. The value of the distribution comes off the share price on the ex-date, and the bulk of the 16.50 will be financed with new debt: "To fund the debt financed portion of the special cash dividend, KLA-Tencor intends to add up to $2.5 billion of incremental debt."
Saddling the company with 2.5 billion in debt to pay a distribution of 2.7 billion isn't anything to get excited about.
"... the ex-div date (not yet pubished but usually business 3 days before the record date)"
Two trading days before the record date, not three.
"That is what doesn't make sense. It says owners of record Dec 1"
There has to be a cut off date. The company decided on Dec 1. Why doesn't that makes sense to you?
"Did you have to own the stock prior to the announcement or the day of the announcement"
Neither. You have to own the stock at the close of trading on the day before the ex-date. But why would you buy it just for the dividend? As bellbell63 points out, the price of the stock will drop on the ex-date by about the amount of the dividend, so the distribution is not free money.
Options are not necessarily adjusted for special dividends; it depends on the size of the special dividend. Do a google search for "OCC Infomemo #25361" (and include the quotation marks). That explains it.
"Where did the 18th show up? All I see is this:
"The special dividend is payable on December 31, 2014, to shareholders of record on November 20, 2014. I assume today is ex-div, but where is that noted."
A record date of Nov 20 makes the ex-date the 18th. It's noted on Yahoo's CBSO page under Key Statistics. It's noted on the NASDAQ website. It's noted on every quote service that includes ex-date listings.
"I have the drop in share price showing up in my acct today, but no indication of divvy or shares. What is up with that?"
You gave the answer to your own question: "The special dividend is payable on December 31, 2014"
With a pay date of December 31, why would you expect to be paid on November 18th?