DF ex-dividend on 4/3 (33%, special)
Dean Foods will pay a special dividend of $15.00 on April 2 if you own the stock at market opening on Tuesday, April 3. The dividend will be taxed in part as earning dividend, and in part as return of capital dividend. That’s 32.7% of the share price of $45.890. A big warning flag though: The special dividend will be financed through increased debt. As a result, Moody is likely to lower its opinion of Dean’s debt risk by two notches, increasing the company’s interest payments. The Dallas company will now change its focus to growth in the coming years from internal improvements in its operations. Play it short term, guys.
March 17th, 2007 at 9:56 am
Just imagine how the Technical chart will look like when 1/3 of its value is cut?
How long it will take the compnay to recover from it? How long you will be tied up in this trade?
These special dividents are just a way for company owners to pocket cash and move on and turn
off the light switch.
March 18th, 2007 at 3:43 pm
If I was to buy this stock for the dividend. On the ex-dividend date the price of the stock shares will drop by the amount of the dividend. If the dividend is being paid from cash the companies has why does the value of my stock go down? Its like a journal entry, debit value of stock, credit dividend earnings…… Company did not pay me anything and I gained nothing but a tax item.
March 23rd, 2007 at 4:25 pm
Im getting conflicted info on when you need to own this stock to be eligible for the dividend. Here it says April 2nd - other places say March 27th. Anybody have the real info?
March 23rd, 2007 at 7:29 pm
i want to ask a simple question, if anybody have the right and sure answer??
for how long you need to keep the stock so that you will be able to get the dividend??
i am just wondering that it can’t be that easy, in order for anybody to buy before april 2, and then sell it on april 4 per-exemple, before the stock drops down in price and make 15$ per share,is that right!!!
or the point is that you have to own the stock for an X period of time to issue the dividend and by that time , it dropped in price and you gained nothing with that trade??
March 26th, 2007 at 10:34 am
http://www.sec.gov/answers/dividen.htm
The ex-dividend dates always matters. You have to own the stock
the DAY BEFORE the ex-date to get the dividend. You can sell it
the on the ex-dividend date. If you buy it ON the ex-dividend
date, you will not get the dividend.
http://personal.fidelity.com/planning/tax/distributions/qdi.shtml.cvsr
http://www.fool.com/personal-finance/taxes/2003/06/20/the-new-lower-tax-on-dividends.aspx
April 6th, 2007 at 8:25 pm
Looks at the chart cut up by 1/3 value. Wonder how long you have to wait to get back to the 47.00 level. May be months and maybe a year./ Is it worth it?
April 9th, 2007 at 12:23 pm
If DF goes back to the Pre split level lets say about $47 then you stand to gain over 40% in Cap Gains. Tell me if it took months or a year that isn’t worth it? Get real
April 25th, 2007 at 11:29 am
Contango, What I can tell you is this after 30 days. I bought 700 shares for $32,500 the day before the ex-dividend date with due bills. Then $10,500 was sent in cash to my account, and the stock dropped to about 31.50 or about an account value of the STOCK of $22,000. So the stock at 22 plus the dividend at 10.5 still equated to 32,500. The stock price is now about 37 providing me with a yet to be realize (unrealized) capital gain of about $3,800 in 30 days. How long have to hold? I’ll try to answer that question after holding for 61 days.