The day you are no longer entitled to the dividend the share price drops by the price of the dividend (all other things being equal).
If the price is Ā£1 and the div is 5p - the share price drops to 95p as soon as it goes ex-div.
Sure you get the share for 95p and not Ā£1ā¦but you also arenāt getting the 5p.
Itās a zero sum game.
Itās the same reason buying shares for dividends is pointless. Sure you are getting a dividend - but the share price is also dropping by the same amount. You are no better off than if the company just kept the cash.
Yes but thatās not exactly true though is it because of it was my first time buying onto a stock and like you said the ex div dropped the share price and I bought in lower then come div time the share price could of went higher as well as gaining tha div.
I know though what you mean a out div getting paid then the same gets reinvested and the share price stays the same and it gets paid lit etc etc
I have plenty stocks where I get a div and itās share price increases by alot per year so I get a double whammy not a zero sum game.
Some div stocks tho are just stuck for years at the same price and never change or even worse drop in pricd
I donāt think you have understood, Shadey is saying donāt base your timings of buying shares based on ex dividend dates. In the grand scheme it makes no difference.
Your comment relating to some dividend shares double and you get the dividend isnāt relevant to what you originally asked.
I closed my position in BP earlier this year at its peak, but prior to that they performed ok for me, I just lost confidence in management strategy and regular negative press. The money has since served me much better elsewhere.
Have you done sufficient research to buy in now, are you confident that they will be a big player in the future of renewables and low carbon solutions, are you happy to invest in another cyclical stock, as it fluctuates with the price of oil? Fossil fuels arenāt going anywhere soon, but clearly the very long term future of companies such as BP will be based on their ability to be able to adapt.
So forget your second part of your answer Iām still sticking with the fact if its your first time buying a stock it seems it would of been best if the date was really close to the ex div just to hold out to after the ex date then buy, but like yous say I donāt understand so Iām prob not getting it.
Yes well this is what I having to read into more about how much they really are investing in renewable etc and we will need oil for decades to come.
Around my area all that you see is no and esso with 1 shell garagex but everyone comments shell up this up that up BP down, although there were plenty fighting this case for BP saying it was still up 2% on that rough year where as I canāt remember the ither company was down 34% overall some renewable type oil company I havenāt heard of that people kept saying sell BP and buy into thst instead.
Iāll have a further dive into. The company and then decide I donāt have a large holding already it was just to top up since itās one of the very few I have in red lol but there must be a reason for it as its drooooj g like 2% a day at times.
Stupid me yes everyoneās comparing chev and xon with BP thatās who I was trying to remember above.
I hold both BP and SHELL.
BP are getting into diversity more I know they not long ago bought a US Solar company and they are into Wind and they have cleared off some dept so all in all I Think I will just keep buying on a regular basis.
T212 pays a lot quicker. Received payment today for what I think is IUKD, IMB and VUSA, but still waiting for app and emails to confirm. Nothing from BP yet