The Commonwealth Bank of Australia (ASX: CBA) share price is down 3.1% to $71.08 in trade today but shareholders shouldn't panic as the stock has gone without the rights to its $2 per share interim dividend.
In other words the stock is only down around 0.2% once we adjust for the dividend payment not being available anymore.
Some speculators attempt to 'dividend strip' big bank shares in buying them in the days before they go ex-dividend in an attempt to sell out at a small profit including the dividend in the days after it goes ex-dividend.
However, this strategy often results in losses as the stock falls further than the dividend payment. You also have to adjust for brokerage costs and the lack of franking credits if you don't hold a stock for 45 days after it goes ex-dividend.
Among the other big bank shares today, Westpac Banking Corp (ASX: WBC) is up 0.4% to $26.31, Australia & New Zealand Banking Group (ASX: ANZ) is up 0.4% to $26.56 and National Australia Bank Ltd (ASX: NAB) is up 0.7% to $24.38.
