ASH ex-dividend on 10/26 (15%, special)
Ashland will pay a special dividend of $10.20 on October 25 to holders as of Tuesday, October 26. That’s 15% of the share price of $63, and will be taxed as earning dividend. The company also announced a share repurchase program of 7 million shares.
September 24th, 2006 at 10:34 pm
Has the ex-div date been moved forward on this one?
September 26th, 2006 at 5:03 pm
Ex -div 10/26 ? Record date 10/10 ? and payable 10/25 ? Something not right. They will the divident first and than you go ex-div ? How sweet.
September 26th, 2006 at 5:27 pm
Here is the nitty gritty so you can’t hit and run:
Because of the magnitude of the special cash dividend, the New York Stock Exchange has determined that the ex-dividend date will be October 26, 2006, the business day following the payable date for the special cash dividend. Ashland shareholders of record on the October 10, 2006, record date who subsequently sell their shares of common stock through the payable date for the special dividend will also be selling their right to receive such dividend. The special cash dividend is expected to be taxable to shareholders at the dividend tax rate and will not be considered a return of capital
September 28th, 2006 at 9:11 am
You can short the stock the day before it goes ex-div. Buy to cover the following day.
October 6th, 2006 at 8:25 pm
Short the stock? Don’t you have to pay the divident to someone?
October 7th, 2006 at 8:05 am
I’m new at the dividend stuff, so please excuse if my questions seem a bit dumb.
1. Currently I don’t own any ASH, so I’d have to purchase by Oct. 10 if I want in, right, since that’s the record date?
2. Not ready to try shorting yet, but since the dividend is so large, I’d be willing to hold until price heads north after the ex-div date drop. How long do people here think it will be for share price to come close to pre ex-div date levels? I know this isn’t really the essence of dividend capture, but would greatly appreciate any assistance.
Thanks,
Greg
October 8th, 2006 at 7:51 pm
After the ex-div date the price of the stock will tumble down $10.50. That will devastate the technical charts and who knows when that will come back?
October 12th, 2006 at 1:16 pm
I’m new at the dividend stuff, so I’m trying to understand some specifics:
1) If I buy shares after the record (Oct 10) am I intitle to receive the dividen?
2) To get the dividend I must hold the shares until the ex dividend date (Oct 26). This means that, to be intitle to receive the dividend I only can sell on Oct 27 or can I sell on Oct 26?
Sorry in advance if this look very stupid doubts but as mentioned I’m new on this dividend subject.
Any help you can provide me would be very helpful.
Thanks in advance and Best Regards
October 14th, 2006 at 3:51 pm
Wow Slimetar …that’s quite a declaration that the stock will ‘tumble’ by $10.50 on the ex-dividend date and who knows when it will go back up again. We’d really appreciate if you would provide some rational justification for your comment. Thanks.
October 19th, 2006 at 9:57 pm
FYI the price of stock is adjusted by the divident amount on the Ex-divident date. ASH would be adjusted by 10.50 from previous days close. There will be a huge gap in its chart.
October 22nd, 2006 at 10:31 am
Do the puts and calls strike prices get adjusted in any way on the ex-dividend date, or do they ride through?
October 22nd, 2006 at 10:55 am
The get adjusted, but the calculation is somewhat complex for options:
http://smartdividend.com/static/FAQ.html
October 30th, 2006 at 10:06 pm
I got stuck with options I bought, 50 puts. They were all adjusted in a weird way. Losses started mounting on those hence making the div deal stale.
October 30th, 2006 at 11:06 pm
Best is usually to buy puts on exdiv day and profit from the cool down.