Way more confusing than need be. I take this to mean , simply, that if you hold the shares prior to the EX-DATE , you get the div. This is no different than any dividend. The way its worded it makes it sound like if you daytrade the stock you will owe the dividend, which is pretty absurd. As a result of closing the amendment, the related borrowings and the issuance of the senior notes, Warner Chilcott's board of directors has today declared a special cash dividend of $8.50 per share. The special cash dividend is payable to shareholders of record on August 30, 2010 and will be paid on September 8, 2010. Pursuant to the rules of The NASDAQ Stock Market, when a dividend is declared in a per share amount that exceeds 25% of a company's stock price, the date on which that company's shares will begin to trade without the dividend, or ex-dividend, is the first business day following the payable date. The Company understands from NASDAQ that, because the $8.50 per share special cash dividend is expected to exceed 25% of the Company's share price, it will apply this rule and the ex-dividend date will be set by NASDAQ as September 9, 2010, the first business day following the payable date for the special cash dividend. The Company understands that this will mean that trades in its ordinary shares entered into after the record date and before September 9, 2010 (the "due bill period") will have a due bill attached for the special cash dividend payable on September 8, 2010. Shareholders who purchase these securities during the due bill period (even if the trade will settle after that due bill period) are entitled to receive the special cash dividend, and sellers who sell the securities during the due bill period (even if the trade will settle after the due bill period) are not entitled to the special cash dividend. Investors who enter into trades to purchase ordinary shares on or after September 9, 2010 will not be entitled to the special cash dividend payable on September 8, 2010.
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I think it would be better to pay an increased dividend out over time rather than in one lump sum since all that means is that the stock will go down $ 8.