4 ms·

Perhaps the cause was that the ex-date of the latest dividend was 06/14/2021 [1] [1] https://ycharts.com/companies/KO/dividend https://ycharts.com/companies/KO

Perhaps the cause was that the ex-date of the latest dividend was 06/14/2021 [1] [1] https://ycharts.com/companies/KO/dividend https://ycharts.com/companies/KO/dividend

cecilpl2 5y ago
Explanation: In order to be eligible for the dividend of $0.42/share, you had to be holding the stock on Friday at close. You would therefore normally expect the share price to drop $0.42 between Friday close and Monday open. Looks like that accounts for about half of the "drop", which means KO lost less than 1% over the weekend. Hardly worth a news article.
quickthrowman 5y ago
That would acccount for about half of the drop between Friday close and Monday open, nice catch! Journalist narratives behind stock price action are almost always wrong or misleading.
- pc86 5y ago
  "behind stock price action" seems irrelevant to that sentence :)
etangent 5y ago
wouldn't this be something already arbed out? Dividend dates are known -- one can make a quick buck shorting if one knows for sure the price will change.
- deleted 5y ago
  [deleted]
- Scoundreller 5y ago
  Sort of. There’s taxation différences that vary based on where the account holder is based, so the drop won’t exactly equal the dividend amount, even if it was paid immediately.
- quickthrowman 5y ago
  The price is adjusted on ex-dividend day. You can attempt to arb dividends with options, but the algos will beat you.
- noitpmeder 5y ago
  It is pretty visible in most instruments. If you're calculating a simple expected price of a stock at the open it's pretty normal to take the closing price from the prior trade day and adjust it based on any corporate actions (dividends, splits, ...). Now whether or not this is actually the price that the instrument will trade at is a different story, but it's a good initial estimate. Market data and other activity will quickly inform you as to the actual price.
- cecilpl2 5y ago
  No, because if you short at close on ex-dividend and buy back at open the next day, ceteris paribus you gain the stock price delta (which is exactly equal to the dividend), but you also owe the amount of the dividend to the person you borrowed the stock from. You end up netting nothing.
  - etangent 5y ago
    ah that makes sense, ty very much
- csomar 5y ago
  If you short, you'll pay both interest AND dividends on that stock.
tomudding 5y ago
Additionally, Pogba did the same with Heineken yesterday. Yet that stock (HEIA:AMS [0]) went up 1.39% today, without any other clear signals that would cause the stock to go up that much. Correlated (maybe even caused by)? Who knows, it is the stock market after all, so ¯\_(ツ)_/¯. [0]: https://live.euronext.com/en/product/equities/NL0000009165-XAMS https://live.euronext.com/en/product/equities/NL0000009165-X...

Perhaps the cause was that the ex-date of the latest dividend was 06/14/2021 [1] [1] https://ycharts.com/companies/KO/dividend https://ycharts.com/companies/KO/dividend

cecilpl2 5y ago

Explanation: In order to be eligible for the dividend of $0.42/share, you had to be holding the stock on Friday at close. You would therefore normally expect the share price to drop $0.42 between Friday close and Monday open. Looks like that accounts for about half of the "drop", which means KO lost less than 1% over the weekend. Hardly worth a news article.

quickthrowman 5y ago

That would acccount for about half of the drop between Friday close and Monday open, nice catch! Journalist narratives behind stock price action are almost always wrong or misleading.

pc86 5y ago
"behind stock price action" seems irrelevant to that sentence :)

etangent 5y ago

wouldn't this be something already arbed out? Dividend dates are known -- one can make a quick buck shorting if one knows for sure the price will change.

deleted 5y ago
[deleted]
Scoundreller 5y ago
Sort of. There’s taxation différences that vary based on where the account holder is based, so the drop won’t exactly equal the dividend amount, even if it was paid immediately.
quickthrowman 5y ago
The price is adjusted on ex-dividend day. You can attempt to arb dividends with options, but the algos will beat you.
noitpmeder 5y ago
It is pretty visible in most instruments. If you're calculating a simple expected price of a stock at the open it's pretty normal to take the closing price from the prior trade day and adjust it based on any corporate actions (dividends, splits, ...). Now whether or not this is actually the price that the instrument will trade at is a different story, but it's a good initial estimate. Market data and other activity will quickly inform you as to the actual price.
cecilpl2 5y ago
No, because if you short at close on ex-dividend and buy back at open the next day, ceteris paribus you gain the stock price delta (which is exactly equal to the dividend), but you also owe the amount of the dividend to the person you borrowed the stock from. You end up netting nothing.
- etangent 5y ago
  ah that makes sense, ty very much
csomar 5y ago
If you short, you'll pay both interest AND dividends on that stock.

tomudding 5y ago

Additionally, Pogba did the same with Heineken yesterday. Yet that stock (HEIA:AMS [0]) went up 1.39% today, without any other clear signals that would cause the stock to go up that much. Correlated (maybe even caused by)? Who knows, it is the stock market after all, so ¯\_(ツ)_/¯. [0]: https://live.euronext.com/en/product/equities/NL0000009165-XAMS https://live.euronext.com/en/product/equities/NL0000009165-X...