Today, a tantalizing “Potential Dividend Run Alert” circulated for UDR Inc (NYSE: UDR) via our DividendChannel.com Dividend Alerts service. Let’s delve into the details of this intriguing development, shall we?
Understanding the Dividend Run Phenomenon
At its core, a “Dividend Run” is a fascinating concept that came to light during a ValueForum conference. To comprehend this concept fully, let’s begin by examining the projected behavior of a stock on its ex-dividend date.
An ex-dividend date signifies the day when any stock buyer loses entitlement to the specified dividend. Consequently, to qualify for the dividend, shares must have been bought before the ex-dividend date.
Anticipating Pre-Dividend Price Movements
If a stock is expected to decrease by the dividend amount on the ex-date, shouldn’t it surge before the dividend payout? This pre-dividend uptick showcases the inherent anticipation for the forthcoming cash dividend, exemplifying a potential Dividend Run.
Investors have varying strategies to harness Dividend Run effects, from timed purchases and sales to capital gain optimization. When examining UDR’s recent dividends, employing such tactics yielded promising results.
Analyzing UDR’s Dividend History
Considering the last four dividends issued by UDR, implementing a Dividend Run approach resulted in a capital gain exceeding the total dividend amount in 75% of cases, with a cumulative capital gain of +3.61. This data elucidates the potential for leveraging Dividend Runs effectively.
As UDR gears up for the upcoming ex-dividend date on 04/09/24, poised to distribute a dividend of 0.425/share, the question looms: will history repeat itself in terms of a Dividend Run?
Remember, past performance is no guarantee of future outcomes. Nevertheless, for investors leveraging Dividend Runs, UDR stands out as a compelling dividend stock, boasting an implied annualized yield of 4.57%.
Stay alert for potential Dividend Run candidates in the future and seize the opportunity to receive email alerts directly in your inbox through our Dividend Alerts feature, courtesy of DividendChannel.com.
Further Reading:
SSW Options Chain
NE Dividend History
Funds Holding AYRO
The opinions articulated herein are solely those of the author and may not reflect the viewpoints of Nasdaq, Inc.
