Dividend question

[mime]

Hey guys. I found out that I purchased a stock on the date it became ex dividend. Do I still collect the dividend?

 

[rozella]

G'day mime,

Answer is No

 

[adobee]

I am very new to share trading. It is apparent that post dividend shares tend to drop value somewhat. Is there a rule of thumb that post dividend the shares will drop a certain amount of the return?

 

[mlennox]

The general theory is that the stock will drop the cost of the dividend.. so if a stocks paying a 5 cent dividend it will drop by this amount, it is not always the case though some go down further on the ex date and some go up..

 

[Judd]

Sometimes it is odd in that a share price may drop less than the total value of the dividend. For example if a dividend is 10c fully franked, the share price may only drop by 10c and not 14.29c (10+(10*3/7) or 10/.7. Seems that the value of the franking credit is ignored on occasion. Mind you sometimes when the price goes ex-dividend, it drops more than the value of the dividend!

 

[PhoenixXx]

Take a look at the two TOTAL opposite of ZFX on two ex-div dates.

16/10/2006 Close $13.1 while previous close was $13.08
2ct UP on 70ct fully franked dividend

30/3/2007 Close $15.78 while previous close was $16.51.
73ct drop on 70ct fully franked dividend

 

[rozella]

I always allow for a stock to drop the dividend + franking credit to cover me in my margin accounts.

It often depends on the state of the market as to how much it drops on exdiv day. Assuming the exdiv stock has a reasonable report, on a breakeven market day, it should drop the dividend. If the market is on a down day, it could possibly drop dividend + franking credit or even more, & on a really good day it could possibly return to pre exdiv prices, so there is quite a range & there seems to be no exact formula.

 

[adobee]

Take a look at the two TOTAL opposite of ZFX on two ex-div dates.

16/10/2006 Close $13.1 while previous close was $13.08
2ct UP on 70ct fully franked dividend

30/3/2007 Close $15.78 while previous close was $16.51.
73ct drop on 70ct fully franked dividend

Would you expect ZFX 's current price ($15.32)to be reflective of the dividend payment or other market factors.

 

[rozella]

Zinc is down & the A$ is up, both working against the ZFX price.

 

[BIG BWACULL]

Not a question but,
I bought 600 hundred shares WOW $500 big bucks worth of MAH shares and recently got a special dividend of 1cent, 600*1 cent = 600 cents, Should be getting 6 bucks in the mail BOOYAH

 

[vishalt]

Yeah they'll send you a cheque in the mail.. or if you're trading CFD's it'll be directly transferred into your trading account.

 

[BIG BWACULL]

Yeah they'll send you a cheque in the mail.. or if you're trading CFD's it'll be directly transferred into your trading account.

Itll cost them more to than 6 bucks (my dividend ) to send me a cheque doh.