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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » CDB dividend payment...

CDB dividend payment...

+4
CHASE
aladdin
Slstock
UNI
8 posters

Go down  Message [Page 1 of 1]

1CDB dividend payment... Empty CDB dividend payment... Sat Jun 25, 2011 3:08 pm

UNI


Senior Equity Analytic
Senior Equity Analytic

can you explain how will they pay dividend....Im a newcomer to the market..I have 2500 CDB shares...

2CDB dividend payment... Empty Re: CDB dividend payment... Sat Jun 25, 2011 3:12 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

UNI wrote:can you explain how will they pay dividend....Im a newcomer to the market..I have 2500 CDB shares...

Company will send you a check to your registered address. ( Unless you have direct deposit instructions )

3CDB dividend payment... Empty Re: CDB dividend payment... Sun Jun 26, 2011 9:16 am

aladdin

aladdin
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

has any one got the dividend by now ?

4CDB dividend payment... Empty Re: CDB dividend payment... Sun Jun 26, 2011 9:54 am

CHASE

CHASE
Manager - Equity Analytics
Manager - Equity Analytics

Date of Announcement:-10.Jun.2011
Rate of Dividend: - Rs. 2.00 per share / First & Final Dividend
Financial Year: - 2010/2011
Shareholder Approval: - Required
AGM: - 30.June. 2011
XD:-01.July.2011
Payment: - 11.July.2011

5CDB dividend payment... Empty Re: CDB dividend payment... Sun Jun 26, 2011 11:14 am

mark

mark
Expert
Expert

please remember,when a company declares a dividend share price shoot for a while and coming down gradually......if you are a longterm holder no matter of that,but if you bought these shares to get the dividends,then you may be in a trouble........
after XR normally price go down,but if the price go down more than two rupees,then you will be at a loss....
as examples....
*DFCC-declares a dividend of 7Rs,share price shoot to 180,now the price is 150
*KOTA-declares a dividend of 5Rs,share price shoot to 172,now 150Rs
there is many more examples
so my advise may not relate to this topic,but normally you may get a chance to buy back a particular share at lower levels after sometimes......

just my opinion,consider it also Cool

6CDB dividend payment... Empty Re: CDB dividend payment... Sun Jun 26, 2011 11:35 am

ABEST


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

by cheque

7CDB dividend payment... Empty Re: CDB dividend payment... Sun Jun 26, 2011 8:58 pm

aladdin

aladdin
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mark wrote:please remember,when a company declares a dividend share price shoot for a while and coming down gradually......if you are a longterm holder no matter of that,but if you bought these shares to get the dividends,then you may be in a trouble........
after XR normally price go down,but if the price go down more than two rupees,then you will be at a loss....
as examples....
*DFCC-declares a dividend of 7Rs,share price shoot to 180,now the price is 150
*KOTA-declares a dividend of 5Rs,share price shoot to 172,now 150Rs
there is many more examples
so my advise may not relate to this topic,but normally you may get a chance to buy back a particular share at lower levels after sometimes......

just my opinion,consider it also Cool


Laughing Laughing Laughing I am waiting to cash my dividend. lol

8CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 8:58 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mark wrote:... after XR normally price go down,but if the price go down more than two rupees,then you will be at a loss...

Small correction.

Because of dividend tax, price need not to go down by two rupees. The formula for price change on ex-dividend is

= Dividend x (1-Td)/(1-Tc)

Td is the dividend tax
Tc is the capital gain tax

Since Sri Lanka hasn't capital gain tax. XD price (not XR, the notation XR is used for ex-right not ex-dividend) is expected to go down by Dividend x (1-Td).

9CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 9:10 pm

mark

mark
Expert
Expert

Academic wrote:
mark wrote:... after XR normally price go down,but if the price go down more than two rupees,then you will be at a loss...

Small correction.

Because of dividend tax, price need not to go down by two rupees. The formula for price change on ex-dividend is

= Dividend x (1-Td)/(1-Tc)

Td is the dividend tax
Tc is the capital gain tax

Since Sri Lanka hasn't capital gain tax. XD price (not XR, the notation XR is used for ex-right not ex-dividend) is expected to go down by Dividend x (1-Td).

yup,the actual affect should be 1.80Rs,but normally you couldn't correctly match the price if you going to sell after XD.....btw i was mentioning about normal scenario in CSE..
i had KOTA,my broker told me sell off and to buy back later,but i hold on and got the dividend,but now you can see the price,as i remember price went down more than 5Rs in XR day....Sad

10CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 9:41 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mark wrote:
Academic wrote:
mark wrote:... after XR normally price go down,but if the price go down more than two rupees,then you will be at a loss...

Small correction.

Because of dividend tax, price need not to go down by two rupees. The formula for price change on ex-dividend is

= Dividend x (1-Td)/(1-Tc)

Td is the dividend tax
Tc is the capital gain tax

Since Sri Lanka hasn't capital gain tax. XD price (not XR, the notation XR is used for ex-right not ex-dividend) is expected to go down by Dividend x (1-Td).

yup,the actual affect should be 1.80Rs,but normally you couldn't correctly match the price if you going to sell after XD.....btw i was mentioning about normal scenario in CSE..
i had KOTA,my broker told me sell off and to buy back later,but i hold on and got the dividend,but now you can see the price,as i remember price went down more than 5Rs in XR day....Sad

Yes, there are under/over reactions. However KOTA drop is partly due to current market situation, remember it has high beta on MPI (2.53) and ASI (1.43).

11CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 9:55 pm

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Normaly after dividend no reason to drop of price. But in some instances when the shareholders are disapointed with the amount of dividend declared(Because they think that the company has not performed as they expected) that would create a negative effect and there is a little tendency to a price drop. Right issue is also an advantage to the existing shareholders and it will add value to the shares. Under the normal situation dividend payment and right issue should push the price. But due to the drastic drop of the indices continuesly CSE has lost investor confidence and they hate rights because they have already borrowed maximum amount of money from all posible sources.Also they think no need to invest further under current situation and try to sell rights. this create a worse situation and lead to further drop of indices.

12CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 10:05 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

kam2011 wrote:Normaly after dividend no reason to drop of price. ... Under the normal situation dividend payment ... should push the price.

XD drop by Dividend x (1-t). Price going up in mid to long run is acceptable though arguable.

kam2011 wrote: Under the normal situation ... right issue should push the price.

Normally around the world "rights" are negative not positive.

13CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 10:50 pm

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Acadamic, If you have good facts I have to agree with you. But my point is after dividend announcement is made share price is dropped because the decision of dividend payment leaks to the market now before the official annoncement is made and therefore , price will start running to a level more than it should be. Afeter dividend is paid price will drop by that amount or more. All these happened because of the reason that our market is not matured enough and yet to improve every aspects including business ethics.

Regading the Rights Under the normal market condition you can just findout going through our past records,
After PABC Rights announcement in 2010 price went up by around 30-40 %. and price was continued to rise even after exrights. Even Greg in 2010 may after rights annoncement price went up and continued to increase further following the exrights as well.And ABANS in august 2010 after Right annoncement price went up and even after exright it was continued to rise..There are many examples. But may be you have many good facts than me. If right issue is not considerd as an benefit to the shareholders companies can go for new public issue.

14CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 11:27 pm

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

kam2011 wrote:Acadamic, If you have good facts I have to agree with you. But my point is after dividend announcement is made share price is dropped because the decision of dividend payment leaks to the market now before the official annoncement is made and therefore , price will start running to a level more than it should be. Afeter dividend is paid price will drop by that amount or more. All these happened because of the reason that our market is not matured enough and yet to improve every aspects including business ethics.

Regading the Rights Under the normal market condition you can just findout going through our past records,
After PABC Rights announcement in 2010 price went up by around 30-40 %. and price was continued to rise even after exrights. Even Greg in 2010 may after rights annoncement price went up and continued to increase further following the exrights as well.And ABANS in august 2010 after Right annoncement price went up and even after exright it was continued to rise..There are many examples. But may be you have many good facts than me. If right issue is not considerd as an benefit to the shareholders companies can go for new public issue.

I do not intend to continue this discussion as I "feel" it is useless. Just two points.

  • Don't try to generalize past two years of the CSE.
  • If you think XR prices go up, go and invest in all XRs. It is your money.

15CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 11:42 pm

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Acadamic , this is not to argue with you. But to discuss to undestand the market behavior. These days everything happened in the market abnomaly. that is mainly due to lost of investor confidence and many other reasons. It is natural when a merket is dropped like this who is going to invest further. That is my point . That is why xright price is coming down.this is my personal view and different people may have their own view on this matter. We will see other members view if they are interested.

16CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 11:47 pm

mark

mark
Expert
Expert

kam2011 wrote:acadamic , this is not to argue with you. But to discuss to undestand the market behavior. These days everything happened in the market abnomaly. that is mainly due to lost of investor confidence and many other reasons. It is natural when a merket is dropped like this who is going to invest further. That is my point . That is why xright price is coming down.this is my personal view and different people may have their own view on this matter. We will see other members view if they are interested.

XRight price will be mainly depend on the
*amount of shares issued
*attractiveness of right price(discounted or not)
*if any attached warrants
*liquidity(public holding)
*corporate disclosures
*etc


@academic-yes beta value is a thing to look for,but normally selling pressure in red markets will drag any share down regardless of dividends or rights

17CDB dividend payment... Empty Re: CDB dividend payment... Mon Jun 27, 2011 11:57 pm

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Absolutely You are correct mark. I agree.

18CDB dividend payment... Empty Re: CDB dividend payment... Tue Jun 28, 2011 10:01 am

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

mark wrote: beta value is a thing to look for,but [emphasis added] normally selling pressure in red markets will drag any share down regardless of dividends or rights

High beta shares go up (down) in up (down) markets more than low beta shares. So, in your reply the word "but" is meaning less. Just wrote to avoid any misunderstanding.
.

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