Considering only the coupon payable on May 22, Unipol is the stock with the most substantial remuneration relative to its share price
For investors to timely buy a stock close to remunerating shareholders, collect the dividend, and sell the stock soon after is not a move that offers easy results
As many as 18 companies in the Ftse Mib and numerous others do mid, and small-caps will detach their dividend on Monday, May 22. Among the big names are Generali, Intesa Sanpaolo, and Eni. Considering only the coupon payable on May 22, it is Unipol the stock with the most substantial remuneration concerning the share price (as of May 18), with a dividend yield of 7.25 percent, followed by Generali (6.21 percent) and A2A (5.64 percent).
The dividend that Intesa Sanpaolo will distribute in total would correspond to a yield of 6.86 percent, virtually going to occupy the second step of the podium.
In the early hours of the session, the Ftse Mib sailed into negative territory, underperforming against European listings, and then closed down 0.76 percent against a substantially flat Euro Stoxx 600.
Among the stocks affected by the dividend payout, Inwit (+1.79%), FinecoBank (+1.74%), and DiaSorin (+1.53%) closed among the best in Piazza Affari, while Recordati and in the tail group with a 0.79% decline. In general, Mps (+3.92%), Moncler (+2.31%), and Banco Bpm (+1.87%) shone the most.
The post-dividend downturn and “opportunistic” buying
The dividend date is closely watched, but buying a stock close to rewarding shareholders with timing to collect the dividend and sell the stock soon after, is not a move that offers easy results. eToro market analyst Gabriel Debach explained this to We Wealth. “Buying a stock close to the ex-dividend can be an uncertain strategy. To be entitled to the dividend, one only needs to own the stock from the day before the ex-dividend date (even being able to sell as early as the next day). The price, however, subsequently tends to fall in proportion to the dividend distributed,” the analyst had said, “as a result of this drop, one cannot be sure that the stock will recover. No laws can assure us of the future direction of price movements, with the trend not always constant and may vary depending on various factors, such as market conditions and company performance.”
