I recently bought a stock called Health Management Associates (HMA) when they announced that they would be paying out a special $10 dividend. Since the stock was trading at $19 and change, I thought that would make a neat dividend.
The stock goes ex-dividend tomorrow (well its past midnight so its actually today) and I wonder how much the stock will drop. Will it drop by $10? Maybe less or more?
There were some fluctuations in price this week but its still around $20 which I take is a good sign.
Another issue is the tax consequences. Will it be taxed as a return of principle or as a dividend?