Big Ex-Dividend Days Coming

While it is nothing like the last 2 days of March, June, September and December, where we have around 110-120 preferreds and baby bonds going ex-dividend the next 2 days will see significant action.

On 2/13 and 2/14 we will see around 65-70 different issues going ex-dividend. This means we may see more ‘red’ show up on our screens as many of the quote providers do not adjust by the ex-dividend amount.

Something interesting that I sometimes see on ex-dividend date is that a few issues that are either in the early redemption window or near the early redemption date are marked down by the exchanges by the ex dividend amount and then they continue to fall.

For instance if an issue is trading at $25.75 and goes ex dividend by 35 cents the exchange will open shares at $25.40 on the ex date. If the issue is beyond the early call date or very near to it the shares may continue right to follow lower because of the potential call that may be near.

6 thoughts on “Big Ex-Dividend Days Coming”

  1. I’ll be looking to buy any decent securities that show significant weakness in the days after ex date.

    1. Kapil; I truly doubt that will happen. Like Old Slick Willie said “it depends upon your definition of is”. “Is” it a good price ????? Doubtful. LOL

  2. Thanks for the reminder. So even if the security has a 30 day notice provision, it may be called after the ex date, and you may only have 15 days of accrual if called. And there are some preferreds with shorter notice requirements. It would then make sense for the price to drop by more than the dividend amount. Also, if the dividend is triggered by a 2/15 record date, that is Saturday. So I think you are looking at a 2/13 ex date.

    1. Ex would be one day before the record date unless special conditions- not sure what. (since Sep of ’17)

      1. T+2. If the record date is a Saturday, you need to be owner of record by Friday. So you have to purchase by Wednesday. If you purchase on Thursday, you don’t become record owner till Monday.

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