Does a stock generally sell off immediately after the Ex-Dividend date is reached? Does a stock PPS climb in the days before the Ex-dividend date as people try and "get into" the stock so they qualify for the divvy?
Barring any other tax consequences (which I would not have due to trading within a Roth IRA), Is it better to sell a stock prior to the Ex-Dividend date and give up the (.10) dividend in return for a higher share price?
Jo
Posted by PCola77 on :
Depends on a lot of factors. If the stock is a .20 stock and pays a .10 dividend, then yeah, most likely on the Ex-date there will be a sell off and the price will drop by about the .10. Sometimes it doesn't work that way, and I've made some good money holding through an ex-date on small stocks.
As for big board stuff, I'd be surprised if any of them moved on the ex-date either way.
Posted by Jo4321 on :
It's a big board stock. (CTB) Ex-dividend date is tommorrow.
Am I understanding it right that you need to hold until COB on the Ex-dividend date to get the dividend. But if you sell the day after the ex-dividend date, you'd still qualify?
Jo
Posted by PCola77 on :
No, you are not correct.
"Ex" means "without" so the ex-date is the first day that the stock trades without the dividend attached to it.
So you can sell at the open tomorrow (the ex date) and your selling it without the dividend.
Make sense?
Posted by Jo4321 on :
thanks for that correction.
So even if I sell tommorrow. The fact that I was on record as having owned it today, I would still get the dividend?
I'm so confused.
I've been reading some articles, and I thought I understood it, but apparently not!
![[Confused]](confused.gif)