PEG Dividend

Discussion in 'Trading' started by Eldredge, Dec 3, 2003.

  1. Could someone confirm that I have correctly understood the dividend on PEG?

    I am of the understanding that PEG is paying an annual dividend of 2.16, and that tomorrow is ex-dividend for .54 of that dividend. So, if I purchase PEG before the close today, I will receive the .54 dividend at a future date even if I have sold the stock. I understand that - at least theoretically PEG will be worth .54 less tomorrow. I just wanted to be sure that I have the ex date and dividend amount correct, and that I am correct in my understanding of receiving the dividend. Thanks for your help with a basic question.
     
  2. You are correct. If you own PEG at the close today, you will get the dividend. Ex-date is tommorow, so it will theoretically be worth .54 less. Payment date is Dec 31, so that's when the dividend will hit your account, even if you sell it on the open tomorrow.
     
  3. Thank you Lescor.
     
  4. A related question. If you buy a stock the day before it goes ex-divident in after market hours, do you still get the dividend? For example, you buy PEG today at 5pm. I assume you do but wanted to check.
     
  5. No. You would have to buy the stock BEFORE the close on the day before the ex-div date. (It goes ex-div at the close of the preceding day).

    If ABC's ex-div date is tomorrow (12/4), you would have to own the stock today (12/3) by the close of normal mkt hours to get the div.

    You could buy it at 3:59est, and sell it at 4:01 and keep the div.
     
  6. sprstpd

    sprstpd

    How sure are you of this? Seems like at 4:00:01pm you would see people trying to pick people off in the after-market. If it is as you say, then it seems to be a pretty stupid way of doing things. Please post a reference.
     
  7. people trying to pick off other people in the stock market! no way! it can't be true!

    :(
     
  8. i have never seen documentation of exactly when the dividend cutoff time is. is 4 the cutoff or is it 8 when all trading stops? does anyone have it in writing?
     
  9. yeah i was wondering this myself, too.

    i'd assume on the naz it's probably more reliably 4:00:00. seems like on a floor its more willy-nilly but who knows...?