How to play a $13.50 spec Div DPZ

Discussion in 'Stocks' started by DeltaSpread, Apr 18, 2007.

  1. DPZ has declared a whopping special $13.50 dividend. It will be paid on May 4th to all shareholders on record by April 27th.

    Here is what I am wondering--

    The stock price will be trading at the adjusted dividend payout the next trading day Monday on May 7th.

    So if you bought it say a few trading/business days before the 27th to ensure you meet the cutoff date & then bailed the next day after the record date, would you still get paid the dividend payout on the 4th??
  2. dont


    The stock will drop by the dividend amount!

    May close the day up or down but it will drop by the divi
  3. Yes - but when is the key. The div payout is the 4th, so would it drop the next trading day after that on the 7th? If so, the $13.50 cushion is more than enough for you to bail the day after the record cut off date which is nearly a week earlier.
  4. OK - so it looks like the ex-dividend date happens right around the time/before the record date.........................