I bought stock before the ex-dividend date, but the settlement date on Scottrade says it will settle after...?

Question

...the ex-dividend date. Will I still get the dividend? The whole reason for buying the stock before the ex-dividend date was to capture the dividend! Your expertise on this is appreciated.

Answer 1

If you purchased the stock before the ex-dividend date you are entitled to the dividend. The trade date governs, not the settlement date.

However, watch you monthly statement to be sure that you do receive the dividend. Sometimes there are paperwork problems, but not often.

Answer 2

Make sure WHERE you got the X date is giving you a valid X date. The place I would go for the X date, is the company website or the company transfer agent.
My expereince is occaisonally X dates published by someone other than the payor, can be in error, in which case your "dividend capture" strategy needs a rework, which include a completely reliable source for X dates.

I use scottrade and as far as I know they are straight up.
Your other two answers previous to this one are exactly correct about the difference btwn the "trade" and "settlement" dates.

Good Luck

Answer 3

I think the whole reason for the ex-dividend date being before the record date is to cover your situation. It gives time for sales just before the ex-dividend date to settle before dividends are paid.
http://www.sec.gov/answers/dividen.htm gives more information.

Answer 4

Hi, i know what your question means. i also think stock market is a nice place for investing.

I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.

http://www.bernanke.cn/stock-trade/

Best Wishes && Good Luck!

Answer 5

Great point, I'm interested to know more too

Answer 6

That is a tricky question..