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Kinder Morgan Energy Partners Message Board

tomcypert 4 posts  |  Last Activity: Nov 24, 2015 7:36 PM Member since: Sep 22, 2001
  • Reply to

    Special Dividend

    by tomcypert Nov 20, 2015 7:38 PM
    tomcypert tomcypert Nov 24, 2015 7:36 PM Flag

    Hi guys, I wasn't trying to recommend that current owners of PDI sell their shares before the ex-date and repurchase them after the ex-date. That's a game that is hard to win. I'm talking about people who are thinking about purchasing PDI for the first time during the months of November and December right before the special dividend date. Those folks might be better off waiting until after the special dividend ex-date to avoid paying taxes on their own money.

  • Reply to

    Special Dividend

    by tomcypert Nov 20, 2015 7:38 PM
    tomcypert tomcypert Nov 23, 2015 7:05 PM Flag

    Hi guys, in theory, the price of PDI has appreciated during the year the amount of the special dividend. It will not spike up right before the special dividend, but the price will decline immediately after PDI goes ex-dividend. If you want to buy PDI late in the year (December), it is to your advantage to wait until after the special dividend goes ex. This is particularly true if the special dividend is large. Good discussion.

  • Reply to

    Special Dividend

    by tomcypert Nov 20, 2015 7:38 PM
    tomcypert tomcypert Nov 21, 2015 9:48 AM Flag

    The price of PDI will drop by the amount of the special dividend on the ex date. I'll buy PDI that day and get more shares for the same amount of money. I'll get the amount of the special dividend in additional shares and not have to pay any taxes. That is why I'm waiting for the ex date.

  • tomcypert by tomcypert Nov 20, 2015 7:38 PM Flag

    I really like PDI and plan on taking a position soon. I'm going to wait until after the special dividend in December because I don't want to incur a tax liability on my own money.

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