How to play a $13.50 spec Div DPZ

[DeltaSpread]

DPZ has declared a whopping special $13.50 dividend. It will be paid on May 4th to all shareholders on record by April 27th.

Here is what I am wondering--

The stock price will be trading at the adjusted dividend payout the next trading day Monday on May 7th.

So if you bought it say a few trading/business days before the 27th to ensure you meet the cutoff date & then bailed the next day after the record date, would you still get paid the dividend payout on the 4th??

 

[dont]

The stock will drop by the dividend amount!

May close the day up or down but it will drop by the divi

 

[DeltaSpread]

Quote from dont:

The stock will drop by the dividend amount!

May close the day up or down but it will drop by the divi

Yes - but when is the key. The div payout is the 4th, so would it drop the next trading day after that on the 7th? If so, the $13.50 cushion is more than enough for you to bail the day after the record cut off date which is nearly a week earlier.

 

[DeltaSpread]

OK - so it looks like the ex-dividend date happens right around the time/before the record date.........................