Emerson Radio Corp. (MSN)

[stargazer123]

Doing more research, it looks like normally a stock would fall the amount of the dividend on the ex-dividend day, which would be before the payable day. However, for a 25% stock dividend, or higher, the ex-dividend day is the day following the payable date. The payable date for MSN is Tuesday 30 September, so Tuesday the stock should open 70 cents below Mondays closing price or $2.00. If you own shares and want to be paid the dividend, if I have this correct, you have to wait until Wednesday to sell your shares, but, whether you own shares or not, you can buy more starting Tuesday morning and share in the profit as the stock works its way higher again. (Possibly the stock won't open lower until Wednesday, the ex-dividend day. The articles weren't clear on that point.) As you may have noticed, the stock has been strong ever since the special dividend was announced. People realize that more will probably be declared in the future. The last few days the stock dropped, but then started climbing again and finished back at $2, its new trading range. So on the morning that the stock opens lower, this coming morning or Wednesday, I will buy more shares. That way I can participate as they go back up again, plus eventually receive another special dividend or have the stock bought out at a higher price.