Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of grocer Safeway (NYSE: SWY) jumped as much as 11% today, after moving up its quarterly dividend.
So what: Management said it would pay its normal $0.175 per share dividend on December 31 instead of next year. This saves investors from higher dividend taxes that will take hold next year.
Now what: This is just another ridiculous reaction to a dividend, and the sell-off during the day shows that not all investors are crazy in chasing after dividends. Even near the end of trading, the stock is up $0.44, more than the entire dividend! This isn't a reason to buy the stock today, and I would actually wait for it to fall back to earth after this dividend craze is over if you've been looking at adding shares.
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