Dividends payment question

[737ngx]

Hello,

can I get some guidance on a question I have around stock dividends,
If a company pays dividends every 3 months, I buy stock for that company but I only keep them for 6 weeks and sell them before the payout date, will I still be entitled to 6 weeks worth of dividends?

I was reading an article that described dividends Ex-Dividend Date, Record Date, and Payout Date, but I am not clear about it.

Many Thanks
Nic

 

[malaguti]

Hello,

can I get some guidance on a question I have around stock dividends,
If a company pays dividends every 3 months, I buy stock for that company but I only keep them for 6 weeks and sell them before the payout date, will I still be entitled to 6 weeks worth of dividends?

I was reading an article that described dividends Ex-Dividend Date, Record Date, and Payout Date, but I am not clear about it.

Many Thanks
Nic

dividends aren't dependent on how long you have held the stock for, just how much you hold
as long as you hold the stock before the ex dividend date you will get the dividend, whether it was a day before, or 6 weeks before

the record date is just the date the registrar records all holders. typically 2 days after ex dividend date, but that's irrelevant
payout date is when the dividend is paid. irrelevant

all that matters is the ex dividend date. you must hold before, not on (don't purchase on the ex div date), not after

 

[737ngx]

dividends aren't dependent on how long you have held the stock for, just how much you hold
as long as you hold the stock before the ex dividend date you will get the dividend, whether it was a day before, or 6 weeks before

the record date is just the date the registrar records all holders. typically 2 days after ex dividend date, but that's irrelevant
payout date is when the dividend is paid. irrelevant

all that matters is the ex dividend date. you must hold before, not on (don't purchase on the ex div date), not after

Thanks for the reply, but just to be sure, if I buy before the ex div date, but I sell before the payout date, would I get the divident?

Thanks
Nic

 

[malaguti]

Thanks for the reply, but just to be sure, if I buy before the ex div date, but I sell before the payout date, would I get the divident?

Thanks
Nic

Yep

 

[Gustavo_ZAM]

If you held the position LONG the overnight before it went ex-dividend, you are entitled to receive the distribution. Please be mindful that if you hold the position SHORT the overnight before it goes ex-dividend, you will be liable to pay the dividend. We always advise our traders to be aware of these dates when holding overnight positions so there are no surprises. Hope this helps.