Ex-Dividend selling

Anecdotally, I’m seeing a pattern of not-insignificant amount of day-after-record or day-after-ex-dividend selling in some good yield / high ROE stocks. Is that a usual pattern these days? Healthy money volume rotating through upcoming record dates?

Hi @FlyingCircus,

IMO, it is not a smart investing move.

For many companies, the normal daily price movements are around the quarterly payout.

The other part of this is the price adjustments made by the exchanges for all corporate events like dividends and splits.

If the dividend is $.25, before market open on ex-div day, all open orders are reduced by $.25. So the stock is worth 25 cents less but you will receive the dividend of 25 cents.

It is more like a dog chasing its tail …

Does that help you?

All holdings and some statistics on my Fool profile page
https://community.fool.com/u/gdett2/activity (Click Expand)


No. Buying dividends by selling immediately post ex-dividend and using the proceeds to buy just prior to another stock’s ex-dividend date assumes the market is inefficient and like the pitch for day-trading, you can ‘beat the market’.

But if buying the dividend works for you, then that is where you should be.