Market Currents
Annaly Capital Management (NLY) declares $0.45/share quarterly dividend. For shareholders of...
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Tuesday, December 18, 2012, 4:32 PM ETAnnaly Capital Management (NLY) declares $0.45/share quarterly dividend. For shareholders of record Dec. 28. Payable Jan. 29. Ex-div date Dec. 26. (PR)
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The Ex-Date, or Ex-Dividend Date is the first day that a stock trades "without" entitlements to the "next" dividend. The ex-date is typically two businesses days prior to the ""next" record date which companies determine who should receive the "next" dividend.
In order to receive a dividend from a paying company, you must buy the stock "prior" to the ex-date. You may sell the stock any time on or after the ex-date and still receive the dividend, since you would be selling the stock without the dividend rights. The ex-date is the second business day before the date of record.
Record Date
Date on which a shareholder must officially own shares in order to be entitled to the "next" dividend.
Basically, you own the shares on and up to X date you get the "past/or current" dividend. You own shares on or after the Record Date..And hold them before the next X date...you get the "furure/or next" dividend. The two days in between is "no man's land" and you need to hold them into the Date of Record up until the "next" X-Date...hope this helps.
The third eye
If the dividend were cut in half, the price per share would also drop close to 50%. That drop would dwarf any dividend yield. The logic above is simply nuts. There is no scenario where the share price would remain even close to the current price if the dividend were cut by 50%.
Disclosure: long NLY
Also long NLY - in it for the dividend - my return still over 12%.
Price doesn't always track or move in the same direction as the div.