Replies to post #659 on Northern Tier Energy LP (NTI)

[bzusa]

What?
- "The settlement date recognizes ownership but has nothing directly to do with the dividend entitlement"

Not to the distribution payer, but certainly to to the dividend receiver.

If you own the shares on the settlement date, then you are entitled to the distribution, if not, you are not entitled.

The WTI-WCS spread is still above $23 - yea

[pete807]

I think we agree jugs... Read my post again...just semantics. When some companies say the 22nd they assume you know there are three settlement days and thus you must buy it by the 19th. No confusion here. I spoke with Schwab about it too and the distribution will be deducted and actually come off the stock price on Tuesday at open.
What I said after that was it might be better to wait till Tuesday and buy after the stock is likely lower than the close Monday less the 68 cents {the distribution) which it will open at Tuesday. You miss the payout but may buy lower than the price less the payout thereby getting the best deal. Sorry if there is any confusion. I am the type that holds because the distribution is return of capital and wont be taxed if I never sell. My kids will get a stepped up cost basis and not pay tax on those payouts or the gain from my cost basis, which may be reduced to little or nothing. That was the intent when Ronald Reagan signed the law in 1986.