Imagine receiving a “Potential Dividend Run Alert” for Verizon Communications Inc (NYSE: VZ). Quite the intriguing prospect, wouldn’t you agree? At first glance, the notion of a “Dividend Run” may seem esoteric, reminiscent of a piece of arcane lore whispered at a financial conference. But in essence, it delves into the captivating dance of stock prices leading up to an ex-dividend date — a dance laden with clues for shrewd investors.

Enter the concept of the ex-dividend date, a key marker in the lifecycle of any dividend-paying stock. This date signifies the cut-off point for any potential shareholder to be entitled to the upcoming dividend. Post the ex-dividend date, all bets are off; the dividend ship has sailed, leaving latecomers on the dock, empty-handed.

Following this logic, stocks historically exhibit a tendency to dip by the exact amount of the dividend on the ex-date (barring other market forces at play). It’s a simple equation: if a buyer stands to gain $0.665 in dividends before the ex-date, it’s only natural that the stock price reflects this gain — a seamless equilibrium in the intricate tapestry of the market.

But here lies the crux: if stocks are poised to drop on ex-dates due to dividend payouts, wouldn’t it be logical for them to ascend in the lead-up to dividend distribution? It’s akin to a crescendo building to a musical climax, with anticipation and underlying pressure propelling the stock price upward in the days preceding the dividend — the essence of a potential Dividend Run.

The narrative intensifies when we consider the timeframe for capturing these Dividend Run effects. Strategies abound, ranging from strategic buy-and-sell maneuvers around ex-dates to calculated dollar-cost averaging methods. Each investor dances to their unique tune, orchestrating their moves to maximize capital gains amidst the dividend fervor.

Take, for instance, the recent VZ 0.665/share dividend that went ex-dividend on 01/09/24. In the fortnight leading up to this pivotal date, VZ shares soared, gaining 2.67 in value. This surge exemplifies the exhilarating pre-dividend crescendo that defines a successful Dividend Run.

Reflecting on the last four dividends disbursed by VZ, a strategic investor employing Dividend Run tactics would have outpaced the dividend amount itself in capital gains. With a cumulative “Divvy Run” total of +5.3, VZ exemplifies a stock that offers not just dividends but potential capital growth as well, a rare confluence in today’s market.

With the upcoming VZ dividend of 0.665/share set to go ex-dividend on 04/09/24, the stage is set for a potential Dividend Run encore. Will history repeat itself in this enthralling financial narrative?

Upcoming Dividend: 0.665/share
Ex-Div Date: 04/09/24
Payment Date: 05/01/24
Dividend Frequency: Quarterly
Full VZ Dividend History »

Indeed, the past is but a shadowy prelude to the future, offering us mere mortals a tantalizing glimpse into the enigmatic world of Dividend Runs. While no crystal ball can guarantee future returns, one thing remains crystal clear: VZ, with its implied annualized yield of 6.59%, is a beacon of promise beckoning savvy investors towards potential prosperity.

So, sit tight and keep your eyes peeled for the next Dividend Run contender. And if you crave real-time updates delivered to your doorstep (or rather, inbox), why not partake in the feast of knowledge by signing up for our complimentary Dividend Alerts service, courtesy of DividendChannel.com.

Also see:

• KFFB YTD Return
• SCG market cap history
• DAX Options Chain

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.