Thread: Dividend Ex-Date Price Drop

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  1. #1

    Default Dividend Ex-Date Price Drop

    Why does Dividend Stock Price drop by their Dividend Pay amount? Does it really drop or is it just an expression? I looked at some dividend stock and on the date of the ex-date, some stock drop some didn't and some even rose, what's best way to combat that buying prior to the ex-date?
  2. #2


    They're priced in many times. Buying a stock just in time to get the dividend rarely works
  3. #3


    Whats the best way to capitalized on Dividend stocks? Should you buy after the price drop or before the price drop.
    For example: OAKS had a special divided payout at 1.33, and I purchase the stock at 6.10, the following day the price drop to 4.86 because the market corrected itself to adjust for the dividend price. I am expected to received 665 in dividend payment but I do not plan to hold onto the stock for a long time. I plan on selling the stock after the recorded date. I do understand that I will be selling it for a lost, so plan on selling it when the stock price jump up at least 25, which will put the stock at 5.10. If I sold it at that price, I will end up with 2,550 and the purchase price was at 3,3065 a difference of 515. The dividend payment of 665 - 515 = 150 a dividend profit of 150. Would that be a ethical or good way of capitalizing dividend stocks.
  4. #4


    Or should I had waited until the dividend price drop from 6.10 t0 4.86 and buy in on the ex-date with a .35 increase that the stock price rose back up to 5.21 and sell at 5.21 or better. 4.86 / 3,000 = 617 shares. 5.21 X 617 = 3,215 therefore I would have made a profit of 215 vs the 150 from the buy in before the ex-date.

    Can you guys help me clarified the best strategy or way to capitalized on dividend stocks.

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