I'm just thinking aloud of the recent patterns I've noticed in the pre and post Ex-dividend strategy for the past couple of months. I've personally known of people who trade shares just before a company announces its results. While the results may go either way, a certain level of predictability is required to mobilize its randomness.

 

 

 

What I think is more predictable is not trading shares before a company announces its results but rather trading shares before a company goes ex-dividend. As we might already know in a perfect market theory, the share price of a company will usually drop in price by the amount of the dividends paid on the day it goes ex-dividend. For instance, SPH closing price on the 31st Jul 2013 (a day before the company goes ex-dividend) was S$4.40. When it goes ex-dividend the next day paying out investors the special 18 cents ...