RE: Evraz Dividend Question8 Mar 2022 13:56
To be clear here.... regarding Zebra’s comment about dropped so accordingly to divi value.....
If there were zero trades upon open bell on divi day, then what zebra mentioned would be correct.
However, this rarely happens due to opening trades whether bought or sold.
The sp will more then likely drop, yes, but I can’t remember the last time I’ve seen a share drop in price according to the divi payment.
During the day, sentiment, desire, sp value will have an impact positive or negative or even flat.
What I’m thinking here, with Evraz, is that it will be very likely to have a lot of buy ins and the divi drop will rise back up considerably. Let’s say we end up on close at 100p on weds.... this then (zero trades) means Evraz will open at circa 62p..... so cheap........ therefore I reckon there will be a lot of limit orders set in place to catch the drop.
Numerous times I’ve actioned this, to then not only benefit from the divi but also from the share itself. Certainly if you’re personal share value goes in the red due to the divi. Averaging down effectively.
This would potentially be highly beneficial to numerous holders on here due to the crashing out of sp value.
Hope all makes sense
UNB1