WPK.TO dividend date

Question

Winpak's press release notes:

Winpak Ltd. (TSX: WPK) announces that at a meeting on June 23, 2021, the Company's Board of Directors declared a special one-time dividend of three dollars (Canadian currency) per share. The dividend is payable July 9, 2021 to shareholders of record at the close of business on July 2, 2021.

I would expect the price drop about CA$3 after July 2, 2021. July 1 is a holiday for TSX. July 3&4 are weekend. So the drop should happen on July 5, 2021. However, today (June 30, 2021) the price dropped by around CA$3. What's wrong with my understanding?

Bob Baerker · Accepted Answer

Here's how it works in the USA and  I believe that it's the same in Canada:

Declaration date

The day that the public traded company declares an upcoming dividend payment to stockholders.

Ex-dividend date

The first day on which a stockholder can sell their shares and still be entitled to receive the upcoming dividend payment.

Payment date

The day which stockholders receive dividend payment.

Record date

The day when you must be on the company's books as a stockholder to receive the dividend.  The ex-dividend date is normally set for two business days before the record date.

Settlement Date

The day in which the stock ownership transferal is finalized.  Also known as T+2.

T+2

Trade Date + 2 business days.  The grace period allowed to settle a trade.  This is the final day to transfer share ownership and money between the parties involved in the stock transaction.

Regarding your position, today is the ex-dividend date which is two days before the record date of Friday, July 2nd.

WPK.TO dividend date

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