{"id":45263,"date":"2023-04-05T14:16:17","date_gmt":"2023-04-05T12:16:17","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/dividendenabschlag\/"},"modified":"2024-03-24T15:11:25","modified_gmt":"2024-03-24T14:11:25","slug":"dividend-discount","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/dividendenabschlag\/","title":{"rendered":"Dividend discount"},"content":{"rendered":"

In the case of shares that distribute a dividend, there is regularly the so-called Dividend discount<\/strong>which can be seen in the form of a price gap in the chart of the share. Among stock market novices and trading beginners, there are sometimes misconceptions regarding the dividend discount, which is why we have compiled the most important information in this article.<\/p>\n\n\n\n

What is the dividend discount?<\/h2>\n\n\n\n

The dividend discount is the loss in the price of a share resulting from the dividend distribution on the Ex-dividend day<\/a> (in Germany on the day after the Annual General Meeting, in the USA on the day before the record date).<\/p>\n\n\n\n

Why does the dividend discount occur?<\/h3>\n\n\n\n

If a company pays a dividend, the value of the share is reduced by the amount of the dividend. For this reason, investors are not prepared to pay the same price for a share on the ex-dividend date as on the previous day, when they would still have benefited from the dividend payout.<\/p>\n\n\n\n

The dividend discount of a share therefore comes from the behavior or the Order adjustments by market participants<\/strong> and is not initiated by the stock exchange or similar.<\/p>\n\n\n\n

When does the dividend discount occur?<\/h3>\n\n\n\n

The dividend discount occurs on the ex-dividend date, or ex-date for short. This does not automatically fall on the day on which the Dividend<\/a> is actually paid out. There are also differences from country to country.<\/p>\n\n\n\n

In Germany<\/strong> a dividend is usually distributed once a year. The ex-dividend date is one day after the Annual General Meeting<\/a> of the company. The dividend will be paid no later than the third business day after the Annual General Meeting.<\/p>\n\n\n\n

In the USA<\/strong> the dividend is usually paid out on a quarterly basis. The ex-dividend date is one day before the record date and is well before the dividend payment date.<\/p>\n\n\n\n

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AT&T paid a dividend on 11\/01\/2019. Record Date was 10\/10\/2019, ex date was 09\/10\/2019, where there was a dividend markdown before the stock market opened, which is why there was a price gap.<\/figcaption><\/figure>\n\n\n\n

How high is the dividend discount?<\/h3>\n\n\n\n

The dividend discount logically corresponds to the Amount of the dividend<\/strong>. However, this does not necessarily mean that the actual price discount or price gap (between the opening price and the closing price of the previous day) must correspond exactly to the amount of the dividend.<\/p>\n\n\n\n

If, for example, price-moving news is published at the same time, this can additionally influence the share price or the price gap on the ex-day and lead to a larger or smaller price gap or even to a higher opening price of the share.<\/p>\n\n\n\n

Can you profit from the dividend discount?<\/h3>\n\n\n\n

It is generally known among stock market experts that there is no \"free lunch\" on the stock market, which also applies in this case. I.e. buying or selling shares on the day of the dividend payment etc. does not bring any direct advantage.<\/p>\n\n\n\n

Also in the option prices of the stock options, the dividend payment and the dividend discount of market participants are priced in<\/strong>.<\/p>\n\n\n\n

In some cases, it can be read that shares quickly make up for the price loss on the ex-dividend day (dividend discount). If this is the case, this can actually psychological reasons<\/strong> as the share appears relatively favorable for a short time. However, this is not a generally applicable rule and the development of the share price ultimately depends on other factors and the overall market environment.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-45263","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}