Upcoming Dividend Run For PR? | U.S. Markets

This morning a “Potential Dividend Run Alert” went out for Permian Assets Corp (NYSE: PR), at our DividendChannel.com Dividend Alerts service (a free electronic mail alerts characteristic). Let us take a look at the state of affairs in larger element, we could?

First of all, what’s a “Dividend Run” anyway? That is an attention-grabbing idea which we first discovered about at a previous ValueForum convention. And to best clarify the idea, we need to begin with the anticipated habits of a stock on its ex-dividend date.

For anybody unfamiliar with the time period, the ex-dividend date marks the trading day when any purchaser of the stock is no longer entitled to the referenced dividend — in different phrases, to be eligible to obtain the dividend in query, one would have needed to buy their shares earlier than the ex-dividend date.

All else equal, the stock price could be anticipated to drop by the dividend quantity on that ex-date (bear in mind, that is “all else equal” and naturally different elements will drive shares larger/decrease on any given day). However give it some thought: if a purchaser is entitled to a 0.15 dividend earlier than ex-date, however no longer entitled to that quantity on or after ex-date, then this drop makes good sense! As a result of if the shares did not drop by that very same 0.15 the subsequent day, then successfully, consumers would successfully be paying 0.15 more for a similar share of stock.

However now take into consideration this: if a stock is anticipated to drop by the dividend quantity (all else equal) on ex-date, then in flip, should not that stock be anticipated to rise someday forward of a dividend? In any case, if a dividend-paying stock did not ever rise and solely fell on each ex-date, then ultimately after enough dividend funds these shares would have fallen to zero. And that would not make any sense for a company frequently incomes money and paying dividends. So certainly, “sometime” earlier than a given dividend, there ought to be kind of a built-in “pressure” for a stock to progressively rise in expectation of that subsequent money dividend… in different phrases: stress for the stock to have a potential Dividend Run.

And spot we put the phrase “sometime” in quotes in that final sentence, as a result of there are differing views amongst totally different dividend traders about timeframe on the subject of capturing Dividend Run results. Some wish to invest (after which additionally to promote) on particular goal dates; others wish to make use of some type of greenback value averaging. Some wish to invest shortly earlier than ex-div, maintain for the dividend, after which promote on or after ex-date (having truly capturing the dividend / acquired the income). Others wish to promote the day earlier than ex-date (the final doable day the place the client of the shares will nonetheless be “paying for” the upcoming dividend) with the concept to try to maximize capital gain. On this capital-gain-focused state of affairs, one common timeframe we have seen mentioned, is to buy about two weeks (ten trading days) previous to the focused sale date.

For instance, think about the 0.15/share PR dividend that went “ex-dividend” on 11/14/24. On the prior trading day — the final day the place a vendor is aware of that the client of their shares can be anticipating that dividend quantity — shares of PR closed at 15.13. And two weeks (ten trading days) previous to that, on 10/30/24, shares closed at a price of 13.73. That signifies that within the closing two-week run-up to the 0.15 dividend, PR gained 1.40 in price.

Wanting back on the final 4 dividends paid by PR, this strategy would have captured a capital gain in extra of the dividend 3 out of 4 occasions, with a “Divvy Run” complete of +2.74 in capital positive factors. By the way, that exceeds the sum complete dividend quantities throughout these final 4 dividends, of 0.71. Here is the information:

In about two weeks from now, Permian Assets Corp (NYSE: PR) will go ex-dividend for its latest dividend of 0.15/share. Will Dividend Run historical past repeat itself?

Upcoming Dividend: 0.15/share
Ex-Div Date: 03/17/25
Cost Date: 03/31/25
Dividend Frequency: Quarterly
Full PR Dividend Historical past »

Because the saying goes, previous efficiency isn’t a guarantee of future returns. However one factor’s for sure: for these traders who depend Dividend Runs among the many instruments of their arsenal, PR is a good dividend stock to find out about and have in your radar screen with its implied annualized yield of 4.26%.

Keep tuned for future Dividend Run candidates, and if you would like to obtain electronic mail alerts proper into your inbox, enroll in our free Dividend Alerts characteristic, courtesy of DividendChannel.com.

Additionally see:

• Warren Buffett Dividend Shares
• Funds Holding OILB
• VNET shares excellent historical past

The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.