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> - the company is legally required to pay the dividend That's a new one to me, and I've been following the financial press for decades. It could mean that th
by redis_mlc 7y ago
> - the company is legally required to pay the dividend
That's a new one to me, and I've been following the financial press for decades.
It could mean that the dividend was previously decided at a board meeting and announced to shareholders already, and they want to follow through to avoid a securities investigation.
- rahimnathwani 7y agoIf you had sold your stock the day after the shares went ex-dividend (a few weeks ago), you would have believed that: - you will receive the dividend - you will have no other financial upside/downside from easyjet's performance If the dividend were to be cancelled, then this would transfer wealth from you (a past shareholder) to current easyJet shareholders. Rules changing after you have made a trade isn't how financial markets are meant to work, because it reduces incentive structures. I'm not saying what should happen in this case. Just pointing out that cancelling a dividend for shares that have already gone ex-dividend seems like it would require a lot of work to make sure that the money comes from current shareholders, and not past ones.