The ex date sets the tax date. That is when the holder becomes entitled to the dividend.
That move up in WMC after the close was silly. They cut from .90 to .80. The stock dividend is just smoke and mirrors and doesn't mean anything. I mean, just do a 2 for 1 split and magic you'll double the value of the company...I don't think so. I wonder if a stock dividend even works for undistributed REIT income? Seems odd that it would but I haven't looked into it. If that was the case, why don't all of them do it instead of doing the special dividends?
The real news is the 16.76 book value, which net of 2/3rds of the .80 cent dividend is 16.23.
The trade may still work though...just need more to fall for this.
I closed out the long on MWE at the close for basically a break even. Rest of the sector did reasonably well today and MWE struggled and couldn't break the 63.30ish level where most of yesterday's volume took place.
I'll watch it tomorrow to see how it acts but it may just be time to move on to something else.
That was a good call on RSO, Reik. Last week when you mentioned it, I went back and looked at my notes from their 3rd quarter call and they had said they were going to maintain the dividend for Q4 so I picked up some on a dip. It should have some room left vs. the rest of the sector in general.
xxavatar - MWE is just a trade. I don't hold this stuff long. It is more about the market, how the the sector is acting and how the stock is reacting to the distribution of the secondary.
xxavatarxx - MWE did a SPO today. 4.75 million shares. Volume is solid today (around 4.8 mm as I type this). It and MLP sector in a bit of a downtrend as of late but nothing too bad. MLP "dividend season" follows the mReits so they start declaring mid-January.
I started a position today at 62.95.