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Old 06-10-2016, 05:53 PM
 
24 posts, read 18,595 times
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Hello,
This is a two part question.
On what day is the NAV affected by a dividend? Is it on the ex-dividend date, the record date or the payout date?
When one of the above effects the NAV, then at what time does this occur; before the starting bell, during trading hours or after the closing bell?

Last edited by rjordan393; 06-10-2016 at 06:11 PM..
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Old 06-10-2016, 06:32 PM
 
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the reset is before the opening bell . it is the pay out date when exchange computers reduce nav .
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Old 06-10-2016, 11:39 PM
 
Location: The Pacific NW.
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Quote:
Originally Posted by mathjak107 View Post
the reset is before the opening bell . it is the pay out date when exchange computers reduce nav .
It's actually the ex-dividend date when the share price (or NAV, in the case of mutual funds) is reduced.
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Old 06-11-2016, 01:54 AM
 
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technically it is neither from what i see . it is actually the ex distribution date the drop occurs .

Ex-Dividend Date
The date on which any dividend on a stock that has been declared but not distributed belongs legally to the seller, rather than the buyer. That is, when one sells a stock on or after the ex-dividend date, it will go to the seller when the next dividend comes. On the other hand, if it is sold before the ex-dividend date, the dividend will go to the buyer.
Farlex Financial Dictionary.

ex-distribution date
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to a recently announced distribution of an asset. The price of the stock can be expected to fall by approximately the value of the distribution on this date since the stock no longer carries the right to the distribution.

Last edited by mathjak107; 06-11-2016 at 02:03 AM..
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Old 06-11-2016, 08:05 AM
 
Location: The Pacific NW.
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Ex-dividend, ex-distribution, ex-date...it's called all of these things, but it's all the same date.

---
T. Rowe Price:

"Ex-Dividend and Reinvestment Date—Each fund's share price (net asset value) is reduced by the amount of the per-share distribution on this date. Distribution amounts are reinvested in fund shares on this date for shareholders who elect this option."

---
Zacks:

"On the ex-dividend date, the mutual fund share price will drop by the amount of the dividend. For example, a fund with a net asset value, or share price, of $10 pays a 40 cent dividend. On the ex-dividend date the share price will be $9.60, plus or minus any change in the fund's investments for the day."

---
Nicholas Funds:

"Q. Is a fund's share price affected when a distribution is paid?
A. Yes. Capital gains and dividend distributions will reduce the fund's net asset value per share (NAV) by the amount of the distribution on the ex-dividend date."

---
Martket Watch:

"All other things being equal, the per-share price of XYZ will drop by $5 on 12/5/14 (the ex-dividend date) to reflect that fact that investors are no long entitled to the upcoming $5 dividend and to reflect the reduction in the fund’s net asset value (NAV) due to that dividend."
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Old 06-11-2016, 08:12 AM
 
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in either case op has his info
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Old 06-13-2016, 04:10 AM
 
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Thanks All,
I wanted to be sure I did not buy the dividend as I am watching the S&P 500 ETF (VOO) and the market for clues as to when to purchase it. It's Facing difficulty breaking it's all time high and it's keeping me on the sidelines.
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