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In Sycamore's case, the ex-dividend date is not only after the record date, but also after the payable date!
So, what gives? A careful reading of the Nasdaq Uniform Practice Code reveals that while the ex-dividend date normally falls before the record date, there is a circumstance in which it should fall after the payable date:
Normal Ex-Dividend, Ex-Warrants Dates
(1) In respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security, if the definitive information is received sufficiently in advance of the record date, the date designated as the “ex-dividend date” shall be the second business day preceding the record date if the record date falls on a business day, or the third business day preceding the record date if the record date falls on a day designated by Nasdaq Regulation as a non-delivery date.
(2) In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security,the ex-dividend date shall be the first business day following the payable date.
My take from this rule is that when a company's payout is deemed rather large, the normal rules don't apply so that investors not familiar with the payout dates don't get taken in a big way. In Sycamore's case, it would appear that even though an investor may be on register at the record date, he is still liable to pay out the proceeds from the special dividend up until the day after the cash is actually paid out!
An investor who doesn't pay attention to this quirk might be willing to sell shares of Sycamore for a major discount following the record date. Don't do that!
Disclosure: No position
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