Hi All,
I have shares that I want to sell, but a dividend is due for payment in May. I read that share prices drop just after the dividend is paid and this drop is usually roughly equivalent to the value of the dividend. Is that correct? If it is, then it would make sense for me to sell now and pay CGT instead of income tax on the value of the dividend/drop. Seems too straightforward, so wondering if anyone here has any advice.
Thanks.
I have shares that I want to sell, but a dividend is due for payment in May. I read that share prices drop just after the dividend is paid and this drop is usually roughly equivalent to the value of the dividend. Is that correct? If it is, then it would make sense for me to sell now and pay CGT instead of income tax on the value of the dividend/drop. Seems too straightforward, so wondering if anyone here has any advice.
Thanks.