General Shares Information

[marctilling]

Hello All,

I bought some shares in Senior PLC based on a tip I was given. I only bought 509 @ 34.5p, and they are now up to 60p.

I was considering getting them out, but am confused about how dividens work. I was looking on thier website at the financals and it shows:

30 October
Record Date for shareholders on register to receive 2009 interim dividend.

30 November
Payment of the 2009 interim dividend.

Now, does this mean that I will recieve a dividend on the 30th November since I have held the shares since about July?... how much should I expect to recieve? If its enough, then I may hold on, but don't really know how all this stuff works as haven't had any shares in a while!

Thanks in advance

Marc

[ringram]

Yeah if I understand correctly. 30th Oct is the ex dividend date, so if you hold shares on that date you will recieve the dividend in Nov.
Also depending on the dividend the shares may rise to a peak by day for obvious reasons, so you could also sell then for better capital gains, which are taxed differently to dividends.

But you should try and case out what the dividends if any are likely to be. Also you should run your winners and cut your losers. So are you sure the filly wont keep running for a while?

I know nothing of the firm btw.

[marctilling]

Do shares typically max out just before the dividend date, or is there no reasoning like that to them?

[matsmith]

the senior plc interim div is going to be 0.9p

so for every share that you own on the ex div date (in this case 28/10/09) you will receive 0.9p


ETA i just saw the date iv quoted and the date you have quoted are different, im just going by what is on the barclays stockbroker website

Edited by matsmith on Wednesday 9th September 14:02

[walm]

Note that in THEORY the share price will drop the exact same amount as the dividend paid out on the ex-div day (all else equal).

To keep it simple as an example. If the shares are worth 10p cum-div then, with a 1p dividend, on the ex-div day the shares will trade at 9p.

Sometimes stocks rally into the ex-div date but that isn't particularly likely.

Unless you have a tax reason to prefer divs over capital gains there is no particular reason to hold a stock through the ex-div date.

All IMHO obviously.