Easy Money For Christmas
 

Buy the stock: OptionsXpress (OXPS) prior to December 13.
They will pay a one time only dividend.
Then, if you want, sell the stock and pocket the dividend money.



We did.
The following transaction has been completed on 12/7/2010 9:30:10 AM (ET):
Account Number: xxxx-8256 - Michael Shatto
Order Number: 954***
Symbol: OXPS
Description: OPTIONSXPRESS HOLDINGS INC
Action: Bought
Quantity: 40 share(s)
Price: $20.95
Commission: $9.95
Reg Fees: $0.00
Net Amt: $847.95

Thank you for trading with optionsXpress. We appreciate your business.

Re: Easy Money For Christmas
 

optionsXpress
Dear Shatto,
optionsXpress continually strives to keep our customers as informed as possible concerning developments that may affect their accounts. There has recently been dividend activity related to one of the positions you hold in account xxxx-8256. We believe the following information may be of interest to you.
What has occurred?
Today is the ex-dividend date on a $4.50 per share dividend being paid by OPTIONSXPRESS HLDGS INC. This dividend payment is scheduled to be paid on 12/27/2010.
How does this affect you?
Our records indicate that immediately prior to the ex-dividend date your account held 50 shares of OXPS and is entitled to receive a dividend payment. Provided no revisions are made to the terms of this dividend payout, your account will be credited $225.00 on 12/27/2010*. After your account is credited, there will be a one day delay before the entry is viewable in your online activity. If you are enrolled in the optionsXpress Dividend Reinvestment Program for this security, your cash dividend will automatically be applied towards the purchase of additional shares. If you would like to learn more about Dividend Reinvestment options, please contact us.
Where can you go for additional information?
If you have any questions pertaining to this dividend feel free to contact us through Live Help on our website, via this form, or call our trading desk at (888) 280-8020.
Sincerely,
Scott Johnson
Scott Johnson, Vice President

Re: Easy Money For Christmas
 

Interesting- but do you think the share price will climb more than $1.08 very soon?

Today's price is $15.61, buying at $21.19 (this includes the trading fees) would mean that the share price has dropped $5.58 per share since the purchase- but the dividend payout was only $4.50 per share.

I wonder if companies ever leak dividend info so that the people that hold the stock prior to the news of a future dividend can benefit (they can sell high while everyone is buying up the stock for the coming dividend and the price spikes).

Re: Easy Money For Christmas
 

It is called arbitrage and the dividend is already considered in the price of the stock (thus the decline in the value of the stock after the dividend is paid). I could go into more detail, but screw that, I am studying life contingencies now and do not want to go through my old study material. lol