Upcoming Dividend Run For CWEN? | U.S. Finance News
This morning a “Potential Dividend Run Alert” went out for Clearway Energy Inc (NYSE: CWEN), at our DividendChannel.com Dividend Alerts service (a free electronic mail alerts characteristic). Let’s take a look at the scenario in higher element, we could?
First of all, what’s a “Dividend Run” anyway? This is an attention-grabbing idea which we first discovered about at a previous WorthForum convention. And to best clarify the idea, we need to begin with the anticipated habits of a stock on its ex-dividend date.
For anybody unfamiliar with the time period, the ex-dividend date marks the trading day when any purchaser of the stock is no longer entitled to the referenced dividend — in different phrases, to be eligible to obtain the dividend in query, one would have needed to buy their shares earlier than the ex-dividend date.All else equal, the stock price can be anticipated to drop by the dividend quantity on that ex-date (bear in mind, that is “all else equal” and naturally different elements will drive stocks increased/decrease on any given day). But give it some thought: if a purchaser is entitled to a 0.438 dividend earlier than ex-date, however no longer entitled to that quantity on or after ex-date, then this drop makes good sense! Because if the shares did not drop by that very same 0.438 the subsequent day, then successfully, patrons would successfully be paying 0.438 more for a similar share of stock.But now take into consideration this: if a stock is anticipated to drop by the dividend quantity (all else equal) on ex-date, then in flip, should not that stock be anticipated to rise someday forward of a dividend? After all, if a dividend-paying stock did not ever rise and solely fell on every ex-date, then finally after enough dividend funds these shares would have fallen to zero. And that would not make any sense for a company regularly incomes money and paying dividends. So certainly, “sometime” earlier than a given dividend, there needs to be kind of a built-in “pressure” for a stock to step by step rise in expectation of that subsequent money dividend… in different phrases: strain for the stock to have a potential Dividend Run.And discover we put the phrase “sometime” in quotes in that final sentence, as a result of there are differing views amongst completely different dividend traders about timeframe in relation to capturing Dividend Run results. Some prefer to invest (after which additionally to promote) on particular goal dates; others prefer to make use of some kind of greenback price averaging. Some prefer to invest shortly earlier than ex-div, maintain for the dividend, after which promote on or after ex-date (having truly capturing the dividend / obtained the income). Others prefer to promote the day earlier than ex-date (the final potential day the place the client of the shares will nonetheless be “paying for” the upcoming dividend) with the concept to try to maximize capital gain. In this capital-gain-focused situation, one common timeframe we have seen mentioned, is to buy about two weeks (ten trading days) previous to the focused sale date.For instance, think about the 0.431/share CWEN dividend that went “ex-dividend” on 03/03/25. On the prior trading day — the final day the place a vendor is aware of that the client of their shares shall be anticipating that dividend quantity — shares of CWEN closed at 28.02. And two weeks (ten trading days) previous to that, on 02/13/25, shares closed at a price of 26.28. That implies that within the ultimate two-week run-up to the 0.431 dividend, CWEN gained 1.74 in price.
Looking back on the final 4 dividends paid by CWEN, this strategy would have captured a capital gain in extra of the dividend 3 out of 4 instances, with a “Divvy Run” whole of +4.75 in capital positive aspects. Incidentally, that exceeds the sum whole dividend quantities throughout these final 4 dividends, of 1.682. Here’s the info:
Ex-Dividend
——Price 2 Weeks Prior—»
——Price 1 Day Prior—»
Run Gain/Loss
03/03/250.431
02/13/2526.28
02/28/2528.02
+1.74
12/02/240.424
11/14/2427.36
11/29/2429.49
+2.13
09/03/240.417
08/16/2428.99
08/30/2428.96
-0.03
06/03/240.41
05/16/2427.09
05/31/2428.00
+0.91
Div Total:1.682″Divvy Run” Total:+4.75In about two weeks from now, Clearway Energy Inc (NYSE: CWEN) will go ex-dividend for its latest dividend of 0.438/share. Will Dividend Run historical past repeat itself?
Upcoming Dividend: 0.438/share
Ex-Div Date: 06/02/25
Payment Date: 06/16/25
Dividend Frequency: Quarterly
Full CWEN Dividend History »
As the saying goes, previous efficiency isn’t a guarantee of future returns. But one factor’s for sure: for these traders who rely Dividend Runs among the many instruments of their arsenal, CWEN is a good dividend stock to learn about and have in your radar screen with its implied annualized yield of 5.78%.Stay tuned for future Dividend Run candidates, and if you would like to obtain electronic mail alerts proper into your inbox, enroll in our free Dividend Alerts characteristic, courtesy of DividendChannel.com.
Also see:
Top Stocks Held By Ray Dalio
JPN Videos
HBP market cap historical past
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
Stay up to date with the latest news within the US markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on home trade. We present every day updates to make sure you have entry to the freshest info on stock market actions, commodity costs, currency fluctuations, and main financial bulletins.
Explore how these trends are shaping the longer term of the US financial system! Visit us commonly for probably the most partaking and informative market content material by clicking right here. Our rigorously curated articles will keep you knowledgeable on market shifts, investment methods, regulatory adjustments, and pivotal moments within the US financial panorama.
