Comments on: ELSE ex-dividend on 5/3 ($1.05) http://smartdividend.com/2006/else-ex-dividend-on-53-105/ Covers all big dividend announcements on Wall Street Fri, 10 Feb 2012 11:21:37 +0000 http://wordpress.org/?v=2.0.5 by: jerry govesky http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-31 Fri, 05 May 2006 15:17:52 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-31 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 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

]]> by: Sam http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-30 Thu, 04 May 2006 17:49:09 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-30 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 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

]]> by: John http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-29 Thu, 04 May 2006 16:50:54 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-29 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 :) 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 :)

]]> by: jerry govesky http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-28 Wed, 03 May 2006 14:05:23 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-28 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 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

]]> by: John http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-27 Mon, 01 May 2006 04:45:13 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-27 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. 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.

]]> by: John http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-26 Mon, 01 May 2006 03:39:15 +0000 http://smartdividend.com/2006/else-ex-dividend-on-53-105/#comment-26 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. 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.

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