Autumn dividends, the cuts on the Ftse Mib on November 18th. In 2020, maxi coupons were expected from Unicredit and FCA

The innovation of Poste Italiane stands out among the Piazza Affari companies who are accustomed to giving their shareholders a prepayment dividend in the autumn season. Throughout Monday there will be 5 FTSE Mib titles to take away the coupon: Mediobanca, Recordati, Poste Italiane, Tenaris and Terna. That of November 18 will not be the last appointment because shortly before Christmas, December 16, it will be up to STM disconnect a deposit of 6 cents per share. Down payment already released in September instead by Eni (0.43 euros).
To collect the dividend, the share must be held at the close of the last working day before the coupon detachment.

The first time of Poste and the rich coupon of Mediobanca

Looking at Monday's deadlock, Mediobanca's dividend of € 0.47 stands out, equal to a yield of around 4.5%. For Mediobanca it is the actual dividend and not a down payment as it closes the 2018-2019 balance sheet as of September 30th. Among the other dividend yields between 1% and about 1.5% per Recordati (€ 0.48), Tenaris (€ 0.1182) and Terna (€ 0.0842). Finally, Poste Italiane approved the distribution of an ordinary dividend advance of € 0.154 per share upon approval of the third quarter accounts, with a yield of around 1.4%. The deposit will be paid starting from November 20th, with the coupon detachment date on 18th and record date on November 19th.

Outside the Ftse Mib down payment coupon also for Banca Mediolanum (0.21%) with a substantial yield of 2.2%, e Danieli (€ 0.15 for savings shares and € 0.1707 for savings).

In 2020, even richer dividends

Considering only the Ftse Mib, the estimates of Il Sole 24 Ore indicate this year the distribution of over 21 billion euros of ordinary dividends, in strong growth from the 19 billion of 2018 and on the top since 2008. Amount that is destined to increase further in 2020 with some companies such as Banco BPM, Saipem and Telecom Italia that could return to distribute the dividend, which has been lost in recent years. Also under observation Unicredit with the consensus of analysts that sees in 2020 a dividend more than doubledor, while Fca could give shareholders an extraordinary dividend of 5.5 billion if the merger with Psa goes through.
Considering the context of very low rates with the 10-year BTP that makes just over 1% even after rising in recent weeks, the average yields in the order of 3.5% of the coupons detached from Piazza Affari represent interesting values ​​and are also among the highest in Europe.

Is it better to enter before the break?

But is it worthwhile to enter a title close to the break to obtain the generous coupon? The first risk is that of being harnessed to bearish phases of Piazza Affari. One of 24 Gann rules it is precisely "never buy to collect a dividend". There is also the factor to consider taxation . “Dividends are calculated in a rational manner from the market and the write-off reversal is already discounted. Entering only for the dividend, tendentially does not benefit the investor, especially if he is a private individual, who pays the 26% tax on the coupon collected since the dividend is a capital income and not a different income. The reduction in the share price of the security is instead on the total. In theory, therefore, it may be better to enter the ex-coupon deadline.
Much depends on how the action works after the take-off. "The real challenge is to see if the market will reduce the entire quota, something less or something more," stresses the trader Tony Cioli Puviani.
Another strategic choice could even be to sell the stock before the coupon detachment. A choice to take into consideration if the security is at a higher price than the current price. Selling the stock would have the effect of avoiding taxation on the dividend and accumulating a lower capital loss. On the other hand, if you make a profit, the choice to keep the title or sell it is irrelevant for tax purposes.