Question about Dividends

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Old Jul 11, 2009, 6:49pm   #1
 
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Question about Dividends

Hi
I start wondering about the dividends. Could any one give me a brake down how this works, where and how I can get some information.

Thanks in advance for any help.
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Old Jul 13, 2009, 12:36pm   #2
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You're going to have to be a bit more specific. Otherwise the answer is going to end up being something like "Some companies pay regular dividends to their shareholders, some pay dividends sometimes, and others don't pay them at all."
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Old Jul 13, 2009, 9:13pm   #3
 
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dariusuk started this thread i know some don't pay tham at all. But i would like to know reliable source of information. And what kind account i have to use to buy a dividends.

Darius
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Old Jul 14, 2009, 12:25pm   #4
 
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you cannot buy a dividend. if you hold a stock that pays the dividends, you'll get paid.

here a list a next coming dividens
Earnings.com: Event Calendar - Highlights

ex. buy today caterpillar and on jul 16 you'll get $0.42 per share
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Old Jul 14, 2009, 12:43pm   #5
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Originally Posted by dariusuk View Post
i know some don't pay tham at all. But i would like to know reliable source of information. And what kind account i have to use to buy a dividends.

Darius
Any standard stock brokerage account will do. So will a company dividend reinvestment plan (DRIP). Buy the stock and so long as you own it you will receive any dividends paid.
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Old Jul 14, 2009, 1:52pm   #6
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I found this Shareworld - Dividend Timetable might help
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Old Jul 15, 2009, 1:32am   #7
 
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Companies will declare dates called "ex-dividend dates". If you want to receive the dividend you have to purchase and be holding before the ex dividend date. So if Wally-world announces it's ex-div date is May 28th, you'd have to buy before May 28th to get the dividend. Simple.
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Old Jul 15, 2009, 7:55am   #8
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Originally Posted by kngavl View Post
Companies will declare dates called "ex-dividend dates". If you want to receive the dividend you have to purchase and be holding before the ex dividend date. So if Wally-world announces it's ex-div date is May 28th, you'd have to buy before May 28th to get the dividend. Simple.
I think you will find it is the stock exchange that sets the Ex date.
Also, don't forget you can sell 'Special Cum dividend' after it goes Ex (but before it is paid). Presumably you can buy 'spec. cum' as well.
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Old Jul 15, 2009, 12:39pm   #9
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I think you will find it is the stock exchange that sets the Ex date.
It's the corporate board that defines the ex-date: "Dividend payable to shareholders of record as of ...". Keep in mind that many stocks don't trade on exchanges, so if it were the exchange setting the dates those OTC stocks would never be able to pay a dividend, in theory.
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Old Jul 15, 2009, 1:52pm   #10
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Originally Posted by Rhody Trader View Post
It's the corporate board that defines the ex-date: "Dividend payable to shareholders of record as of ...". Keep in mind that many stocks don't trade on exchanges, so if it were the exchange setting the dates those OTC stocks would never be able to pay a dividend, in theory.
Ok so that's US.
In UK the dividend is declared by the board and should be no later than 4 days before the Ex date (which is always on a Wednesday). As far as the company is concerned they don't really care about the Ex date. They just send the dividend to the person on the register as at the BC (books closed) or record date and let the settlement system sort out who owns the dividend, which 99% of the time is usually the same person.
Maybe it is different in the States or maybe I am wrong.
Oh, by the way the record date is not the Ex date.
The record date is set 2 days after the Ex date
OTC stocks paying a dividend--where? LOL
Or maybe I am right: Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date (from SEC website)

Last edited by raysor; Jul 15, 2009 at 2:01pm.
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Old Jul 15, 2009, 5:42pm   #11
 
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Originally Posted by raysor View Post
Ok so that's US.
In UK the dividend is declared by the board and should be no later than 4 days before the Ex date (which is always on a Wednesday). As far as the company is concerned they don't really care about the Ex date. They just send the dividend to the person on the register as at the BC (books closed) or record date and let the settlement system sort out who owns the dividend, which 99% of the time is usually the same person.
Maybe it is different in the States or maybe I am wrong.
Oh, by the way the record date is not the Ex date.
The record date is set 2 days after the Ex date
OTC stocks paying a dividend--where? LOL
Or maybe I am right: Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date (from SEC website)

Well since the ex div date is 2 days before the record date so its still the company setting that date. The fact that the exchanges fix the date is just a technicality cause it depends on the companies record date.
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Old Jul 15, 2009, 6:10pm   #12
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Well since the ex div date is 2 days before the record date so its still the company setting that date. The fact that the exchanges fix the date is just a technicality cause it depends on the companies record date.
Apparently the dividend timetable is a LSE recommendation but is not mandatory
The Ex date is always a Wednesday ( I can't believe that but I am sure I read it somewhere). And as I say the company itself cares not when it goes Ex.

The dividend should be declared no later than four business days before the Ex-dividend date. This date always falls on a Wednesday and the record date (books closed date) is two business days later. The payment date is twenty to thirty business days after the record date depending on the number of shareholders in the company.
Sounds like you are arguing just for the sake of it!!
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Old Jul 15, 2009, 7:54pm   #13
 
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The ex div date is not always on Wednesdays mate, it can be any date. Example UTG which has it's date set on July 20th (Monday) with record date on July 22.
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Old Jul 15, 2009, 7:58pm   #14
 
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Question about dividends

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Originally Posted by dariusuk View Post
Hi
I start wondering about the dividends. Could any one give me a brake down how this works, where and how I can get some information.

Thanks in advance for any help.
Hi Darius,

As you may already know by now, a dividend is a small payment given to shareholders for every share they hold in a company. Not all companies pay dividends but larger ones tend to and in the UK stock market the payments are usually made every 6 months.

To stop people just buying the shares before a dividend is due and reaping the rewards, a share has an ex-dividend date (ex-div) several weeks before the dividend is due. You need to hold the share prior to this date to receive the next dividend paid.

Some stockbrokers allow you to automatically re-invest the dividend by buying more of the relevant share, others just add the payment to your cash account. You would need to check with your broker to see which applies to you and if you have a choice in the matter.

I wouldn't advise buying shares just because they pay a dividend since there are numerous other factors involved in share purchase decisions.

Better definitions than mine can be found on Investopedia: Dividend

and a number of articles relating to dividends at: Dividends & Income Investing Articles

A dividend screener tool is here: DividendInvestor.co.uk: Dividends and UK Dividend Paying Stocks

Bill
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Old Jul 15, 2009, 9:11pm   #15
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To stop people just buying the shares before a dividend is due and reaping the rewards, a share has an ex-dividend date (ex-div) several weeks before the dividend is due. You need to hold the share prior to this date to receive the next dividend paid.
Oh, come on you are just being f*cking stupid!

To Kngavl;
I must admit that I find that Wednesday thing a bit hard to believe. UTG (Unite??) last went Ex on 15th October 2008 (Yes that was a Wednesday). Is it paying a dividend this year? Are you sure it goes Ex on 20th July?? Are you just trying to wind me up?
Oh, I see you are talking US and I am talking UK!!
UTG-Reaves Utility Income Fund?? Ex-17th June 2009 (No it can't be a Wednesday) That's just coincidence COP goes Ex 21st May (Thursday)
Apologies,I will have to be more careful when answering to see whether the questioner is talking US or UK. Inote Dariusuk is from UK (hence his nickname) therefore I suggest he follows my replies rather than the US/Canadian. Unless he is trading US shares!

Last edited by raysor; Jul 15, 2009 at 9:29pm.
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