Ex-Dividend Reminder: Apple Hospitality REIT, Cboe Global Markets and Central Pacific Financial

Three stocks — Apple Hospitality REIT (APLE), Cboe Global Markets (CBOE) and Central Pacific Financial (CPF) — go ex-dividend on 11/28/2025 and will pay on 12/15/2025: APLE $0.08 monthly (implying ≈0.67% expected open-day price drop vs. a $12.00 quote), CBOE $0.72 quarterly (≈0.28% effect) and CPF $0.28 quarterly (≈0.92% effect). Annualized yields are listed at 8.00% for APLE, 1.12% for CBOE and 3.68% for CPF; CBOE is noted as a potential future Dividend Aristocrat with 15+ years of increases, while intraday moves show modest positive price reactions (APLE +1.7%, CBOE +1%, CPF +2.8%).

Analysis

Market structure: The mechanical ex-div adjustments are tiny (APLE -0.67%, CBOE -0.28%, CPF -0.92%) but highlight structural winners — CBOE (stable fee/derivative flow) attracts income and quality-seeking allocators while APLE (8% yield) draws yield-chasing retail and is most rate- and demand-sensitive. Supply/demand: short-term demand for high yield props APLE bid depth, but any negative fundamental surprise (occupancy, NIM) will trigger outsized supply. Cross-asset: rising bond yields compress REIT valuations, VIX moves directly alter CBOE volumes/fees, and options markets will price early-exercise risk around ex-div dates.

Risk assessment: Tail risks include a tourism shock or CRE re-pricing that could cut APLE distributions, a regulatory or market-volume shock hitting CBOE fee revenue, and a localized Hawaii recession or deposit flight compressing CPF NIM/credit quality. Time horizons differ: expect mechanical ex-div drop immediate (days), sentiment-driven re-pricing in weeks, and dividend sustainability tested over quarters (3–12 months). Hidden dependencies: covenant triggers, deposit stickiness for CPF, and CBOE’s exposure to electronic trading volumes are second-order failure modes.

Trade implications: Favor relative safety in exchange/market-structure exposure and avoid concentrated REIT risk. Direct plays: buy CBOE for a tactical 6–12 month hold; hedge or underweight APLE unless compensated for leverage and occupancy recovery. Use options: deploy short-dated puts on CBOE to collect premium and buy 30–90 day puts on APLE to protect/reduce net exposure. Timing: initiate after ex-div drift (+2–5 trading days) to avoid mechanical price moves.

Contrarian angles: The market underprices CBOE’s secular data/derivatives monetization — a 15+ year dividend-growth narrative can attract index inclusion flows, creating asymmetric upside over 12 months. Conversely, APLE’s headline 8% yield likely understates capital and operating risks; yield-chasing could be a crowded trade ready to unwind if occupancy dips 5–10%. CPF could be a stealth recovery trade if Hawaii tourism growth sustains and deposits remain stable, but concentration risk is material.

Key Decisions for Investors

• Establish a 1–2% long core position in CBOE (CBOE) within 5 trading days and target +10–15% total return over 6–12 months; set a hard stop at -8% to limit downside and consider selling 3-month cash‑secured puts 3–5% below current price to lower basis.
• Reduce or hedge APLE exposure: if long, buy 60-day puts ~5% OTM (e.g., strike ≈ $11.40 on $12 stock) sized to cover 50–100% of position, or trim to <1% portfolio weight; consider writing covered calls 30–60 days OTM post ex‑dividend to harvest income if you keep shares.
• Initiate a tactical 0.5–1.5% long in CPF only on a >5% pullback from today’s level or if Q/Q NIM guidance improves; use a 90-day review and place stop-loss at -10% from entry to control island‑economy concentration risk.
• For income-oriented accounts, sell 30–60 day covered calls on APLE at strikes 5–10% above cost to collect premium immediately after ex‑dividend, limiting downside with a pre-funded protective put if APLE falls >10%.