Stocks and shares, any experts ?

[williamalex1]

For many years I've had shares in Standard life [ Aberdeen ] Does anyone know why the share value nearly always drops, usually by around 25% in the weeks before a dividend is due to be paid.
Every 6 months I think, then slowly return to their previous level.

 

[ManinBlack]

Presumably because the shares go ex div. Anyone buying the shares after the ex div date don't receive the dividend, which goes to the seller. The company needs to close the books a couple of weeks before the dividend is paid so the payments can be prepared. When this happens the shares should be listed as "ex div" in the FinancialnTimes

 

[williamalex1]

Thanks Bill , but in the local rag I buy it only states the share value, no "ex div " shown.

 

[fundy]

***opinion not expert***

cant see that on the chart, obviously price has taken a hiding this year, but looks like it rose most of last year, def cant see a drop of 25%

Youd expect to see the price drop on the ex dividend date to take account for the divi payment, but that wouldnt constitute the drop of that size (this sept divi was 8p)

https://www.standardlifeaberdeen.com/investors/investor-information/share-chart

As a share, you would expect it to broadly follow the indices and then diverge when it announces overperform/underperform of the mkt

 

[williamalex1]

***opinion not expert***

cant see that on the chart, obviously price has taken a hiding this year, but looks like it rose most of last year, def cant see a drop of 25%

Youd expect to see the price drop on the ex dividend date to take account for the divi payment, but that wouldnt constitute the drop of that size (this sept divi was 8p)

https://www.standardlifeaberdeen.com/investors/investor-information/share-chart

As a share, you would expect it to broadly follow the indices and then diverge when it announces overperform/underperform of the mkt

Thanks Fundy, probably just my suspicious mind or imagination, but hopefully it should work out better eventually, as my dividends are paid in additional shares at the current value.
Btw Dec 2015 prices were £ 422 per share, then yoyo'd up and down, now sitting at £262, but we're promise an additional bonus of around 33p a share.

 

[fundy]

Short term the charts a bit on the worrying side with the support just above 3 quid having been broken and currently sitting on the longer term support at 260p, looks ok valued on fundamentals on a very quick look. Depends on where you think global mkts are headed and also the impact Brexit may have on the markets as to whether you think theres value at the current price, but if it goes sub 250p it may get close to 200p pretty quickly (charts only not fundamentals)

 

[rosecott]

Sell, Billy and spend, spend, spend while you're still able to enjoy.

 

[williamalex1]

Sell, Billy and spend, spend, spend while you're still able to enjoy.

Good idea Jim [ Viv ] lol , when the price is right, then you come up for visit and help me drink it.

 

[rosecott]

Good idea Jim [ Viv ] lol , when the price is right, then you come up for visit and help me drink it.

I'm in.

 

[ManinBlack]

Good idea Jim [ Viv ] lol , when the price is right, then you come up for visit and help me drink it.

Address & postcode please!

 

[Bunkermagnet]

Have you tried listening to the "wake up to money" show on radio 5live from 5.15 to 6am every morning? Apart from the financial news, markets and such they do answer listener texted questions.

 

[Mudball]

Thanks Fundy, probably just my suspicious mind or imagination, but hopefully it should work out better eventually, as my dividends are paid in additional shares at the current value.
Btw Dec 2015 prices were £ 422 per share, then yoyo'd up and down, now sitting at £262, but we're promise an additional bonus of around 33p a share.

***opinion not expert***

1) The bonus is paid on face value not the market value, so this should not impact what you receive.
2) If however, the value drop before divident (unlikely), and you are being paid in bonus shares at current rates, then you are in a good place as it means more shares for you
3) Usually the market value of a (good performing) share will go up before it announces dividend and upto the record date.. this is because the market is factoring in the stocks performance into its market price. Once the dividend record date is done, the share price will drop (very rarely by 25%) as some holders will sell it. This is typical of an 'XD' share price. Usually also a good time to buy..

 

[richart]

For many years I've had shares in Standard life [ Aberdeen ] Does anyone know why the share value nearly always drops, usually by around 25% in the weeks before a dividend is due to be paid.
Every 6 months I think, then slowly return to their previous level.

Shouldn’t you be buying more shares at the 25% off price ?