Today, I am excited that two of my stocks (Straco [S85.SI] and Baker Technology [568.SI]) went "XD" today. For those who don't know, XD means "Exclude-Dividend" and any purchase done from this date onwards will not entitled to the declared dividend.
Why am I excited, you may ask? The reason being that it is a common phenomena that the stock prices will drop considerably (close to the dividend declared) on XD and I just wanted to "experience" it with the stocks that I owned.
True enough, following are what happen to the stock prices (as at the time of writing):
Stocks Price Before XD Price On XD Difference Dividend Declared
Straco (S85) $0.63 $0.62 $0.01 $0.02
Baker Tech (568) $0.32 $0.27 $0.05 $0.05
Note : I bought Straco @$0.58 and Baker@$0.31
From the above movement, we can deduce that Straco has much stronger holding power to fence off the drop but it is still early trading hours. In any case, I will just holding on to the stocks for medium-long term.
Cheers!
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