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ELSE ex-dividend on 5/3 ($1.05)

Electro-Sensors will pay a dividend of $1.04 on May 19 to holders as of Wednesday, May 3. $1 is a special dividend, 4c regular dividend. Thanks John.

6 Responses to “ELSE ex-dividend on 5/3 ($1.05)”

  1. John Says:

    Also check out ticker symbol (PONN).

    Protection One, Inc. (OTC Bulletin Board: PONN), one of the largest electronic security companies in the United States, has declared a one-time special dividend of $3.86 per share of common stock. The dividend is payable on May 12, 2006, to holders of record on May 8, 2006.

  2. John Says:

    Ticker symbol (NPSI)

    Inc. NPSI announced that a special common stock dividend of $1.00 per share has been declared, payable on May 15, 2006 to shareholders of record on May 1, 2006.

  3. jerry govesky Says:

    I’m new to this type of trading. I watched SKS and it’s $4.00 special dividend. The price of the stock dropped $4.oo the day before the pay date. So what’s the point. I bought 1000 shares and actually lost money on the whole transaction.
    Am I missing something? I would appreciate any help.
    Thanks
    Jerry

  4. John Says:

    Hi Jerry,

    The cost per share dropped $4, but your cost per share also dropped by $4. Seems about the only way to make money on these “Special Dividend” plays is selling the stock for the profit. I’ll give you an example:

    Bought CVC $27.89 cost per share> $10 special dividend> ex-dividend date, dividend payed> cost per share is now $17.89 + the dividend = I’m even at this point. Sold the stock for $19 something and that was my profit. I’m not a very patient person and jumped the gun on selling SKS, so I broke even on that one..(actually lost money being I have to pay taxes on the dividend). Hope this helps :)

  5. Sam Says:

    Re: Loss on Taxation.
    John, if you end up the year profitable (and hopefully you will :) then you actually derived a tax benefit out of your break-even transaction: you exchanged $4/share capital loss (taxed at 30% for most of us) for a $4/share dividend gain (taxed at 15% for most of us).
    So you actually reduced your tax burden by ~15% x $4 x number of SKS shares you had

  6. jerry govesky Says:

    John:
    Thanks for your answer. Seems you are right. SKS was up to about $20.20 the day before the div payout. At that point I had about $1.10 in cap gains/share. That would have been better. Sam also had a good point about the taxes.

    jerry

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