I bought 190 shares yesterday at 26.60. [They are giving a $6.85 special dividend](https://www.albertsonscompanies.com/newsroom/press-releases/news-details/2022/Albertsons-Companies-Announces-Special-Dividend-in-Connection-with-Signing-of-Merger-Agreement/default.aspx) for those who hold on oct. 24th, paid on Nov 7th. For me, this means I’ll collect $1300. BUT this means they expect the stock price to drop, right? What should I do, what does this mean? Seems a little too good to be true.
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When a company pays out $1 per share the value of the company drops by $1 per share
They didn’t find that special dividend under a rock.
Now if paying that dividend is because they are making more money than investors expected then investors might value the company higher after the announcement than before
You found a secret to infinity money! Don’t tell anyone! Sssshhhh
It’ll dump at a second after 4pm on the 24th. Setting a stop loss that’s good for market and after-hours would help.
Buy stock, sell covered calls buy puts..
Calculate the optimal expiration dates/strikes in regards to position and implied volatility..
Ah, you must be new here. Clearly, you weren’t around for the Shenandoah Telecommunication (SHEN) special dividend excitement last year.
Maybe look into how that turned out.
Since it takes two days for trades to settle anyone buying today wont get the dividend.
Or is tomorrow last day?
Gotta get those bagholders to buy in
Does this have anything to do with the acquisition rumors?
It’s true because Korger is buying Albertsons at $34.10 per share. Ex-div date is Oct 24th and pay date is Nov 7th. Ppl are betting that the deal may not go through. I think it will, I also bought a little position in it.