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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.

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