Berney; RE:" trading with respect to dividends "
Rang up a broker and what he said was this:
(1) You got to buy the day before the ex-dividend date.
(2) The purchase date is what's recorded, regardless of T+3 rules.
(3) You can sell (next day) the ex-dividend date, still get it; but there are some exceptions having to do with record dates being different from ex-dividend dates.
(4) If you short the stock, you gotta pay any dividends.
(5) If you sell a CALL, dividends are factored into PREMs, but not the same thing as selling short the stock.
...well, we're about to see what happens, for real.
bought 1200s UND - Unum Corp DEB A @ 26-1/8 today 24-SEP
Yahoo says UND is ex-dividend 25-SEP, payable 30-SEP, 0.183333 USD/sh
biz.yahoo.com
I chose this one as a test because it is trading in an exceptionally narrow band, 25-7/8 to 26-1/8; we'll see how far it drops - and how long it takes to recover; Round trip commissions are $20 (DATEK).
The others, I want to buy after they drop.
Note the trusts and preferred stox on the notice today.
Found two more "ersatz bonds" from the ex-dividend notice...
WQP - Western Penn Power 8% QUIDS
TVA / TVB - Tennessee Valley Authority 8% / 7.5% QUIDS
-Steve |
