Investing and Ex Dividend

adamni2006

I was about to add 5K to one of my ETFs (pension) and it states that it is trading ex dividend. Does this make any difference to when you should invest, or should I just ignore it and get on with it anyway?

Thanks

masonic

It just means you won't get the next dividend. But the share price will be lower as a result, so you won't lose out because of it.

Usually indicated on investment platforms in an attempt to reassure punters worrying why the share price has fallen.

EthicsGradient

If you were investing outside shelters (ie outside ISAs or pensions), it might be a small consideration on whether you'd rather pay income tax on a dividend by buying shortly before it, or avoid that but be liable to more capital gains tax. But in a pension, it doesn't matter.

kempiejon

just ignore it and get on with it anyway.

There might be better investing mantra but that's a good start. As other have said you've missed the entitlement to this dividend, you'll get the next if you buy before the next exD date. What the price does between now and the next date nobody knows. There is a relationship between share price and the dividend but often masked by other market effects. 

adamni2006

masonic said:

It just means you won't get the next dividend. But the share price will be lower as a result, so you won't lose out because of it.

Usually indicated on investment platforms in an attempt to reassure punters worrying why the share price has fallen.

I'm with HL - so maybe something I missed

cockerWalker

adamni2006 said:

masonic said:

It just means you won't get the next dividend. But the share price will be lower as a result, so you won't lose out because of it.

Usually indicated on investment platforms in an attempt to reassure punters worrying why the share price has fallen.

I'm with HL - so maybe something I missed

You've not missed anything, it's just informational.
Shares, funds, etc have cut off dates when you must have owned them to receive the next dividend. Before the date the share is more valuable as you're buying a share and a near guaranteed payment. After this data you're only buying a share, so the price falls, all else being equal.
If this is in a pension for the long term there's bo reason to care about it at all.