| 12 STI constituents will go ex-dividend this month, while 4 will go ex-dividend in May. |
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The following 12 STI constituents – Keppel Corporation, Sembcorp Industries, Thai Beverage Public Company, Sembcorp Marine, Singapore Technologies Engineering, DBS Group Holdings, Golden Agri-Resources, United Overseas Bank, StarHub, Oversea-Chinese Banking Corporation, ComfortDelGro Corporation, and City Developments – will go ex-dividend this month. For May, the following 4 stocks will go ex-dividend – Wilmar International, Genting Singapore PLC, CapitaLand, and Jardine Cycle & Carriage.
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| Make Ex-Dividends work for you: (as adapted from Investopedia) |
When a dividend is paid, several things can happen. The first of these is changes to the price of the security and various items tied to it. On the ex-dividend date, the stock price is adjusted downward by the amount of the dividend by the exchange on which the stock trades. For most dividends this is usually not observed amidst the up and down movements of a normal day's trading. It becomes easily apparent, however, on the ex-dividend dates for larger dividends, such as the $3 payment made by Microsoft in the fall of 2004, which caused shares to fall from $29.97 to $27.34.
The reason for the adjustment is that the amount paid out in dividends no longer belongs to the company and this is reflected by a reduction in the company's market cap. Instead, it belongs to the individual shareholders. For those purchasing shares after the ex-dividend date, they no longer have a claim to the dividend, so the exchange adjusts the price downward to reflect this fact. |
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| In general, typically, there is a dip in STI Index stocks in Apr/May. |
Lyndell . Trading Rep . Lim & Tan Securities