What is "Dividend Accrual"

Discussion in 'Retail Brokers' started by Martin Gale, Nov 25, 2009.

  1. Incorrect. In theory you are correct, but in practice, how often are all other things equal? I would much rather not pay the dividend...
     
    #11     Nov 25, 2009

  2. Someone trading a live account for more than a week should have a clue about how a dividend is paid, thanks for your .02!
     
    #12     Nov 25, 2009
  3. #13     Nov 25, 2009
  4. l2tradr

    l2tradr

    Ok, then buy instead of shorting on that day. Free money.

    /end sarcasm
     
    #14     Nov 25, 2009
  5. Real smart shorting right before Ex-dividend.
     
    #15     Nov 25, 2009
  6. Yep, most shorts are covered before ex data, and put on again the day after.

    You can see the short interest drop to near zero with the Yahoo real time short feed.

    [​IMG]

    Guess which one is the King
     
    #16     Nov 25, 2009
  7. DHOHHI

    DHOHHI


    Uhhh why do you say that? If a stock is acting weak nothing wrong with going short. I've been short a stock the last 2 ex-dividend dates and had to cough up $$$. If I'm making money on my trades the dividend cost is negligible.
     
    #17     Nov 25, 2009
  8. pcvix

    pcvix

    Very clear explanation.

    Further info:
    http://en.wikipedia.org/wiki/Ex-dividend_date
     
    #18     Nov 26, 2009
  9. Read the original post, moron. In this case, the trade and dividend amounts are peanuts. But if one has to factor in the dividend when computing risk/reward for stocks with dividends, things obviously get complicated.

    Again, this was my question: How does one account for dividend in a risk/reward model? If you don't comprehend the question, spare us the sarcasm and crawl back under your rock and let someone else explain.
     
    #19     Nov 30, 2009
  10. Exactly. Thanks for a reasonable reply. I have no problem with risk. I have a problem factoring dividend into risk/reward. Haven't thought this through. You obviously take on more risk, which may not be worth it. This was the crux of my question, which the trolls here ignored. ET posers like el pollo love it when someone acknowledges a losing trade because it makes them feel like they have company in their general failure.
     
    #20     Nov 30, 2009