Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (48056)	6/18/1999 1:13:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 86076

dividends have an x-dividend date. before the date they trade with the dividend. so let's say the stock is 80 and the dividend is 1 buck. you can buy the stock for 80 up to the close of the day before the x date. on the morning of the x date, the price is adjusted down by 1 before it opens to 79....now mind you there may be other factors at play such as an up or down market or news on the stock, etc. so the stock is not guaranteed to open at 79 exactly. but 79 all other things equal... after the open, the stock trades without the dividend. so you can buy at 3:59 on the day before, sell at 9:31 the day of the x and get the dividend. or afterhours even later... but there is no free lunch since investors won't pay as much for your stock after the dividend x point has passed.

To: wlheatmoon who wrote (48056)	6/18/1999 1:27:00 PM
From: John Pitera	Read Replies (2) \| Respond to of 86076

AM, gave a good rundown on the dividend issue, you have to own it on the x-dividend date. the date the dividend is declared. 10 years ago some of the biggest volume days a given issue where dividend capture plays. since the dividend yield is so low it tends to not be a significant factor. When I was long XON I wanted to get out before the x-dividend date, in May as I have seen it drop several dollars after those dates such as May of 1998, you could tell that the stock had run up and people wanted to take profits, but wanted that .41 cents a share. ANd the stock had fallen quite $4-5 for those who hung around for the the .41 cents. Many other factors are at work in what moves a stock, as you know