Dividend time

fundjunkie

Member
56 0
Hi,
This is probably a stupid question but here goes...

Could I make an element of my stratgey to buy company shares just before they issue their dividend and sell just after? Is there a qualifying period for entitlement to share dividends? Also, how can I find out when a company will pay out?


Thanx,
D
 

Rainmaker

Active member
201 3
Divs

It's a loser!

The price will go ex-dividend (fall) by the amount of the gross dividend. You will receive a dividend net of tax. You will lose unless the price goes up.
 

Typo

Junior member
11 0
Rainmaker: I think dividends are usually quoted net of basic rate at 10%, rather than gross, and the dividend gap is typically the net value.

Up until this tax year (April 6th 2004) you received a credit for the basic rate tax on stocks held within an ISA, thus increasing the dividend value by 11.1%. This usually meant it was worthwhile to ISA a stock just before it went XD rather than just after.
 
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