Ryanair dividend, can you buy in now?

Discussion in 'Investments' started by german, Jul 18, 2010.

  1. german

    german Frequent Poster

    Posts:
    57
    Hi,
    Does anyone know if buying shares now would entitle you to the upcoming dividend?
     
  2. Brendan Burgess

    Brendan Burgess New Member

    Posts:
    26,920
    Hi german

    If a share is quoted cum div, it means that when you buy the share you get the dividend. On a particular date, the share quote goes ex-div.

    It shouldn't matter when you buy the share.

    If a company's share price is 300 cents and it pays a dividend of say 50 cents, the share price should adjust immediately to 250 cents.
     
  3. fikelly

    fikelly Guest

    Have the current Ryanair dividends been paid yet. I have not received mine yet and the payment date was 01/10/2010
     
  4. Brendan Burgess

    Brendan Burgess New Member

    Posts:
    26,920
    Yes. I got mine a few days ago - probably Monday.

    Brendan
     
  5. dontaskme

    dontaskme Frequent Poster

    Posts:
    260
    anyone know how do aib online share trading pay the dividend? Does it go into a bank account or is it by cheque?
    edit: just checked - in bank account dated today
     
  6. JoeB

    JoeB Guest

    That's interesting, and something I'd wondered about.

    So in the absence of other factors that affect the share price... the share price immediately adjusts to 250 cents, and then it gradually increases again towards the 300, and reaches the 300 just before the next dividend due date?
     
  7. mercman

    mercman Frequent Poster

    Posts:
    3,878
    Takes a bit more than that to drive a share price. Fundamentals, sentiment, P & L, International factors and sector preference. Joe if only it was that easy.
     
  8. IsleOfMan

    IsleOfMan Frequent Poster

    Posts:
    609
    I agree. Many times I have received a dividend and the share price has only fallen marginally and other times it has fallen even more than the amount of the dividend.


    http://www.iii.co.uk/investment/detail?code=cotn:RYA.L&display=chart&it=le

    Ryanair has behaved differently.
     
  9. Brendan Burgess

    Brendan Burgess New Member

    Posts:
    26,920
    I was explaining a theoretical position.

    The market responds oddly to dividends. The declaration of a high dividend tends to push up the cum-dividend price as it's seen as a sign of confidence. Deciding not to pay a dividend can push down a share price dramatically.

    If they were not indicators of optimisim or pessimism, the declaration of a dividend should not affect the share price. With all other things being equal, the payment should reduce the price.

    Obviously the market has decided that, in Ryanair's case, all other things are not equal.

    Brendan
     
  10. evoke

    evoke Frequent Poster

    Posts:
    106
    did the ryanair price go down by how much it was paying out in dividend yet?
     
  11. IsleOfMan

    IsleOfMan Frequent Poster

    Posts:
    609
    Click on the chart link above. Also see "discussion" forum if needed. Click on "fundamentals" and scroll down to bottom of page and compare to chart.
     
  12. Brendan Burgess

    Brendan Burgess New Member

    Posts:
    26,920
    Yes, the day it went ex-dividend, it fell sharply.

    However, since then the price has recovered and it is now ahead of it's cum-div price
     
  13. markowitzman

    markowitzman Frequent Poster

    Posts:
    942
    oh goody!

    if your service is so good why are you sharing it with us?