RE:RE:RE:RE:RE:RE:RE:Think about it for a minuteUmmmm, no.
Dividends paid by the company go to the registered holder, the buyer of the shorted shares. The shorter who sold them gets to pay the div to the broker he borrowed the shares from, who is no longer the registered owner. No div, no payment.
nothing magical about it.
WillyWally wrote: But that's true in any type of shorting, not only when shorting dividend stocks. Some people here make it sounds as if it was more expensive for a short to short a dividend stock. There's clearly a misunderstanding... and again, people here think dividend money is magical money somehow.
Sadie222 wrote: Well, the shorter should have the money for the divs and broker fees covered in the proceeds from the sale. It’s having the money left over to cover that can be a problem.
WillyWally wrote: The amount of the dividend payout is removed from the stock price, so a short mathematically doesn't lose anything. Again, a dividend is not magical money coming from the sky. The only real difference here is that a short will need to have the funds now to pay for the dividend, instead of simply having to wait for when covering to close their transaction.