Do you still get the dividend if your short the shares?

Oaktree Capital Group Llc (OAK), last $57.69

Tomorrow, 5/15 is the big day. Will it or won't it trade down approx $1.40/sh?

 

Ehhh...I'll take a stab at it. Trade down to the after tax value, maybe about buck 19

 

tax deferred accounts (IRA/401k/etc) do not allow shorting stock...

 

You're right. I don't know what I was thinking.

 

There are two levels at work


The holder of record – in other words the trader who bought your shorted (and borrowed) shares – will receive the paid out dividend


However the trader shorting had to borrow these shares in the first place – hence that trader must pay the lender of said shorted shares an amount commensurate to the dividend

====================


As for voting rights, when a trader agrees to lend their shares out, they also agree to relinquish their voting rights for the duration of their shares being shorted

The trader buying the shorted share(s) will be the holder of record… and has control of the voting rights for as long as they hold said shares (retaining the buyer of record status)


RN

 

When a stock pays dividend, on ex dividend date it opens lower (the same amount as the paid dividend) so basically you will not lose or gain anything just because of dividend on that day. Say a stock is tarding at $60 and it pays $5 dividend. On ex dividend date, it opens at $55 while it shows no change. Some fools also buy the stock and sell it on ex dividend date which causes selling pressue on the stock while those who got dividend almost get nothing. Some investors sell the stock before ex dividend not to pay dividend tax.
Your question was a basic question but it does not mean that the other threads are any better. You might even make money if we have a market correction. Personally I short many dividend paying stocks and I pay the dividend and still make money.

 

What the gentleman above me said

RN

 

the way to play the game is..Sell before the ex dividend date

OAK... had a run up to 59.50 then on exdividend day it tanked to 55
4 1/2 points spread ...

Next time long into the div date sell then watch the drop then long again...pays way better then shorting or getting the div

 

You could check your theory out here. here's a few others that went ex diviend today.

http://www.thestreet.com/story/1192...k-wtr-sjm-whr-utx.html?puc=yahoo&cm_ven=YAHOO

 

ROFLMAO

Funniest post on ET, has to be.

Kudos, mate