I bought some Indigo Vision shares yesterday after looking for an opportunity to buy since their large increase in price over the last month or so – due to their very positive trading update and announcement of a special dividend. Today is the ex-div date for their special dividend of 70p. I had wondered if the share price would drop by more than the dividend, the exact amount, or less. I hoped for a drop of less obviously or a bounce but it turns out the share price has dropped by just under 80p! This means that had I waited and bought today I would have saved 10p / 411.57p = 2.4%
Perhaps for the majority of buyers the tax liability on dividends works out less than the capital gains of selling before the dividend.
Never mind, my curiosity has been satisfied and I’m more than happy to hold this company given its optimistic outlook .