goodbye, I will second your question. I was expecting a good increase today as a recovery from the ex-date drop. The drop today comes as a complete shock to me. I was expecting to buy today for a short term trade and catch an increase in the stock price. I am happy I did not buy today. I will add that if I had any money I would buy today for a longer term hold than a few days. Good luck to you.
shanghaishark, you might be right about the reason for the drop, but I think the down market was the primary contributor to a greater than usual ex-date drop. I often wonder why people sell the day before the ex-date or on the ex-date when the price is usually down one to two times the dividend. One either loses the dividend or one to two times the dividend. These two days are my favorite buying dates.
sandy, I hope you are right. Last quarter it took two days to recover the ex-date drop and two quarters ago it took six days to recover the pre-ex-date closing price. With a good market we have a good chance to recover the $41.50 pre-ex-date close in less than two weeks.
The current ex-date drop of $1.90 was greater than the prior quarter drop of $0.97 and greater than the drop two quarters ago of $1.02. I suspect the poor general market was the cause. I expected an ex-date loss of $0.74 to $1.48 on the ex-date or one to two times the dividend.
A quick recovery is important to me because I bought 1,000 shares with margin money the day before the ex-date just to collect the dividend and I need to sell and stop paying interest as soon as possible.
I added 100 shares to my long term holding position at $40.16 on the ex-date.
shailendra, thank you for this information. I was unable to find any announcement. I did not listen to the conference call.
arbitragem, thank you for this information. I found one source, Scottrade, that listed 8/7 as the ex-div date, but this has been out for some time and I thought it was a guess based on the last ex-div date. I have not seen any announcement, but I see from another post it was in the conference call.
croat, thank you for this information. Dividends are important to me. I have not been able to find a dividend announcement. Where did you find this information?
I am thinking the same thing you were. It is too bad some of the experts on this board have not shed some light on this situation.
I just bought 1,000 BX at $41.55 for the dividend. This is a short term trade, I hope. I will sell at the first opportunity to do so without a loss. The dividend will give me a 1.7% return on my investment in one day or more than most of my CDs will pay in a year.
I am a long term holder with 600 shares, but I trade more around the dividend.
Good call on the announcement. Announced today, dividend $0.58, record date 5/26, pay date 6/18.
I was wondering about a possible dividend increase because of the last earnings report, but for the last two years PRU has increased the dividend in November. If earnings hold up through November, I think we will get an increase then.
I hope you are right about the price increase. I bought 1,000 at $86.56 today for a short term trade and suffered a paper loss of about $300. I really need to sell this buy as soon as possible.
Good luck to you.