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A stock trades on the Bors exchange in Oslo, which is now closed for the day. Tomorrow is ex-div for that stock. The same company trades OTC in New York, which is still open, and is the same company under a different symbol If I buy it OTC in New York today, do I get the dividend?

Thank you!

L'Supreemo
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Most likely you will not get the dividend because trading in Oslo will not resume until the ex-div date (typically, dividends go to the owners of record before market close on the day before the ex-div date).

In any case, you will get one of two things - the stock at the price before the dividend and the rights to the dividend, or you'll get no dividend, but get the stock at a similar price minus the dividend. You won't get the stock at the lower post-dividend price AND the dividend (no free lunch).

For example, if the stock is trading at 100 and announces a dividend of 5, one option is you pay 100 for the stock today, the value of the stock will drop to 95 on the ex-div date, and you'll eventually get a dividend of 5. Or, you'll pay 95 for the stock and not get a dividend. Either way you'll end up with 95 less cash than before and a stock worth 95 (per share, of course).

(I'm intentionally ignoring "normal" market fluctuations, just focusing on the effect of the dividend)

D Stanley
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  • The price will drop to 95 at the time of the ex-dividend, not when it is paid out. There are shares (eg Unilever, Shell) that trade ex-dividend for more than a month. – Paul Palmpje Mar 04 '24 at 20:55
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    True - I edited to hopefully make that more clear. My main point is that you can't get the dividend and pay the lower post-dividend stock price. – D Stanley Mar 04 '24 at 21:15