Today is a day when some of the big names of the FTSE100 will be going ex-dividend and therefore it is possible that there will be some adjustment down in their share price. It is always worth watching out for such moves because often just prior to a dividend payout the share price of a company may well have been rising, a case of good news already being priced in. The dividend gets paid and the shares fall, sometimes not just by the amount equivalent to the paid out dividend. This can lead to a buying opportunity.
Once the dust settles on such down moves it will often give a trader the chance to get back in as the price will often re-adjust back up, which is exactly what happened to Vodafone recently after their dividend and special dividend payment. For longer term investors, it also gives a chance to buy more at a lower price, assuming you like the fundamentals and nothing has changed as to why you hold the stock.
