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I just read this...
4:56PM Metro-Gldwn-Myr declares $8 dividend (MGM) 20.17 -0.10: Co announces that its Board of Directors has declared a one-time cash dividend of $8 per share. The dividend will be payable on May 17 to stockholders of record as of the close on May 7. Due to the magnitude of the dividend, the NYSE will defer the ex-dividend date to one day following the payment date. As a result, shareholders who sell their shares after the record date, and through the payment date, also will be selling their right to receive the dividend.
Somtimes when stocks declare big dividends, there is a great chance for arbitrage. In this case the stock is 20 bucks, giving an 8 buck dividend..somtimes the stock will sell off that 8 bucks or more. In this case you purchase the stock the day after it trades ex-dividend..when the big hit happens. Often the stock will bounce back, 10% or more after the sellers have exited who only bought for the dividend..
Might be worth a look!
4:56PM Metro-Gldwn-Myr declares $8 dividend (MGM) 20.17 -0.10: Co announces that its Board of Directors has declared a one-time cash dividend of $8 per share. The dividend will be payable on May 17 to stockholders of record as of the close on May 7. Due to the magnitude of the dividend, the NYSE will defer the ex-dividend date to one day following the payment date. As a result, shareholders who sell their shares after the record date, and through the payment date, also will be selling their right to receive the dividend.
Somtimes when stocks declare big dividends, there is a great chance for arbitrage. In this case the stock is 20 bucks, giving an 8 buck dividend..somtimes the stock will sell off that 8 bucks or more. In this case you purchase the stock the day after it trades ex-dividend..when the big hit happens. Often the stock will bounce back, 10% or more after the sellers have exited who only bought for the dividend..
Might be worth a look!
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