Calculating SP after dividend payment - Aussie Stock Forums

Results 1 to 4 of 4
  1. #1

    Default Calculating SP after dividend payment

    Say I have 10000 shares at $4.90 and I get paid a 12c final dividend, does that mean the share price will decrease by roughly 12c after the payment has occured? Theoretically speaking (I know in the real world this doesn't happen).

    I would just like a way of calculating roughly how much a price of a share will go down after the dividend is paid. Is there a formula for that?



  2. #2
    The Oracle brerwallabi's Avatar
    Join Date
    Jul 2004
    Nakhon Ratchasima

    Default Re: Calculating SP after dividend payment

    Serp if there was a formula that could predict the price after going ex we would all be very rich, as you said a 12 cent divvy usually means a 12 cent decrease and I have found it is still the best rough guide, very few shares close down exactly what the dividend payout has been, and occasionally some shares have actually not dropped after going ex but have gone up.

  3. #3

    Default Re: Calculating SP after dividend payment

    This occurs on the Ex-Dividend date, not the dividend pay date. Generally speaking price drop reflects the dividend plus franking credit as a rough guide,although this is not always the case.

    Perhaps check Rozella's thread on ex-div trading for more regarding dividends etc.

    EDIT: brerwallabi beat me by a minute

  4. #4
    rozella rozella's Avatar
    Join Date
    Nov 2004
    NSW Far South Coast

    Default Re: Calculating SP after dividend payment

    I always allow a drop after exdiv of dividend + franking credit, it varies accordingly to market fluctuations. i.e if it bearish then it is closer to the div + fc, if it is bullish then it might drop much less than the dividend.

    So to be on the safe side, because it affects my margin lending ratios, I allow for the worst....but it is really unknown exactly.

    Examples of stocks that were exdiv today: XAO down 12.4, XJO down 16.92

    MBL - div 90.0 + fc 34.71 = 124.71/share........drop today 158.0
    NAB - div 83.0 + fc 28.46 = 111.46/share........drop today 69.0
    RIN - div 14.0 + fc 3.60 = 17.60/share..........drop today 26.0

Similar Threads

  1. Few dividend questions...
    By mofoster in forum Beginner's Lounge
    Replies: 5
    Last Post: 25th-July-2012, 06:51 PM
  2. Newbie dividend question
    By overule in forum Beginner's Lounge
    Replies: 3
    Last Post: 19th-September-2007, 11:05 AM
  3. DRP & wanting to sell shares before dividend payment
    By boiler123 in forum ASX Stock Chat
    Replies: 4
    Last Post: 7th-March-2006, 09:21 PM
  4. Singtel - when is dividend payable?
    By sam21poddy in forum ASX Stock Chat
    Replies: 1
    Last Post: 19th-May-2005, 05:17 PM
  5. Excess dividend payment
    By GreatPig in forum Beginner's Lounge
    Replies: 2
    Last Post: 27th-March-2005, 08:27 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums