Oddities in Stocks/Mutual Funds
  • I noticed a big-time anomaly, which I am trying to understand, in a mutual fund in my 401K. The fund is here on Google Finance:

    https://www.google.com/finance?q=MUTF:SIIIX&ei=wyy9UaiHFYzVrQGRVg

    If you look at May 20, 2013 of this year, you'll see it paid out a $4.35 dividend per share of stock, which is astronomical. At the time the stock price was close to 13 dollars. That means the dividend was 33% of the stock price for just one quarter. As well, the stock price dropped by that amount too. I know stock prices generally dip by about the dividend amount each time it is paid, but this is one instance I am trying to wrap my head around.

    I've looked online for an explanation, but have not found one so far. Does anyone have any thoughts, or have you noticed strange or interesting things like this in the past?
  • Special dividend perhaps? Funds will always drop by the amount in dividends paid out and resume it's upward trend based on future expectations and fundamentals.

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