Amaechi Raphael Chinedu
@Official_ARC·1d
Stanbic went from ₦168 to ₦160, but it didn't lose ₦8. Here's why
On Thursday, Stanbic IBTC (
$STANBIC) closed at ₦168.00. On Friday it closed at ₦160.00. That looks like an ₦8 drop, yet most price lists show it as just -2.14%.
The gap is the dividend. Thursday Oct 15 was the qualification date for the ₦4.50 interim. On Friday the stock went "ex-dividend", and its starting price was marked down by exactly ₦4.50, from ₦168.00 to ₦163.50. Trading then took it to ₦160.00. The real market move was ₦3.50, not ₦8.
$GTCO did the same last week. It closed at ₦131.00 on its Oct 12 qualification date, then started Oct 13 at ₦130.00, exactly ₦1.00 lower for its ₦1.00 interim.
Why prices work this way:
1. A dividend is cash leaving the company, so each share is worth roughly that much less once the payout is locked in.
2. If you were on the register by the qualification date, you didn't lose the ₦4.50. It moved from the share price into a payment coming to you (Nov 13 for Stanbic, after withholding tax).
3. If you buy on or after the ex-date, you pay the lower price and this payout isn't yours.
Next one on the calendar: Zenith Bank's ₦1.50 interim qualifies Fri Oct 23, so expect its starting price on Mon Oct 26 to be about ₦1.50 below Friday's close before trading moves it.
Did a dividend mark-down ever make you think you'd lost money? Tell us below 👇
Not financial advice.
$STANBIC) closed at ₦168.00. On Friday it closed at ₦160.00. That looks like an ₦8 drop, yet most price lists show it as just -2.14%.
The gap is the dividend. Thursday Oct 15 was the qualification date for the ₦4.50 interim. On Friday the stock went "ex-dividend", and its starting price was marked down by exactly ₦4.50, from ₦168.00 to ₦163.50. Trading then took it to ₦160.00. The real market move was ₦3.50, not ₦8.
$GTCO did the same last week. It closed at ₦131.00 on its Oct 12 qualification date, then started Oct 13 at ₦130.00, exactly ₦1.00 lower for its ₦1.00 interim.
Why prices work this way:
1. A dividend is cash leaving the company, so each share is worth roughly that much less once the payout is locked in.
2. If you were on the register by the qualification date, you didn't lose the ₦4.50. It moved from the share price into a payment coming to you (Nov 13 for Stanbic, after withholding tax).
3. If you buy on or after the ex-date, you pay the lower price and this payout isn't yours.
Next one on the calendar: Zenith Bank's ₦1.50 interim qualifies Fri Oct 23, so expect its starting price on Mon Oct 26 to be about ₦1.50 below Friday's close before trading moves it.
Did a dividend mark-down ever make you think you'd lost money? Tell us below 👇
Not financial advice.0 views
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