$10.20 Special dividend for ASH

[jagvik12]

Originally Posted by amohedas

When a dividend is paid does the value of the stock drop accordingly?

I haven't ever held for divies so I'm not exactly sure how they work.

TIA

It's not like the stock will automatically drop the dividend price, but more times than none, stocks will reflect the dividend payout meaning the market will react bearish relative to the dividend. Not too familiar with this particular stock, but see am looking into a dividend play here. See if they've paid out any previous, and when, and for how much and then compare that to the charts to see how much of a correction took place.

[jagvik12]

Originally Posted by Blooey

Yeah, but this old man's quicker!



By the way, what about this?

will be payable on October 25, 2006, to shareholders of record as of October 10, 2006

What does this mean, exactly?

a) Those who have shares ON the 10th, regardless of other days, will get the divi.

b) Those who have shares on the 10th, and hold them at least until the 25th, get the divi.

c) Those who buy shares anytime between the 10th and 25th get the divi, regardless of when they sell.

d) Those who buy shares anytime between the 10th and 25th, as long as they hold at least till the 25th, get the divi.

Confused!

You need to be a shareholder of Record as of October 10th, October 7th to allow 3 days for the shares to settle. The actual dividend will be paid out on October 25th, thus the "paydate."

Investopedia has many key term and definitions, and was imperative in my stock market learning in addition to the SMU here at HSM.

[Blooey]

Right, but do you have to hold the shares until the 25th? Or can you sell them on the 11th and still get your divi?

[coolbloke]

You need to be a shareholder of Record as of October 10th, October 7th to allow 3 days for the shares to settle. The actual dividend will be paid out on October 25th, thus the "paydate.".

YOU WILL HAVE TO HOLD UNTIL OCTOBER 26th. IF YOU SELL BEFORE OCTOBER 26th, YOU WILL NOT GET THE DIVI.

[coolbloke]

Oh Yeah, October 7th is a saturday...so, you will have to buy it on or before Friday(October 6th).

[loveprofits]

http://www.investopedia.com/articles/02/110802.asp

[coolbloke]

Sell it quick on October 26th if you are afraid of losing your gains. Pre-Market baby!

[loveprofits]

according to the article above, it takes about 3 days to be recognized in the companys records as a shareholder, so u really should buy on or before 10/7


i had to edit this, because it was already said like 4 times!!!

[techno791]

Originally Posted by coolbloke

You need to be a shareholder of Record as of October 10th, October 7th to allow 3 days for the shares to settle. The actual dividend will be paid out on October 25th, thus the "paydate.".

YOU WILL HAVE TO HOLD UNTIL OCTOBER 26th. IF YOU SELL BEFORE OCTOBER 26th, YOU WILL NOT GET THE DIVI.

You found the ex-date and it said Oct 26th?

I don't like to play these NYSE dividends much anymore. The open on the day after the ex-date I always noticed an automatic depreciation of shares due to the dividend. If I could figure out how to play without having a loss, it's nice.
Must be a trick to it.

[ryerras]

lol.. the stock opens with minus dividend amount.. So, dont worry no body is getting a free lunch here..

Most of the times, the divi plays are good, because lot of people buy in anticipation of the dividend, so the pps rises and u can capitalize on that rise.. But on the actual dividend day, people usually sell and the stock opens the previous day close minus the dividend amount. So, you wouldnt get anything, unless the stock makes it back to the pre-dividend levels slowly