If I sell my shares after the record date but before the day of payment, would I be eligible for the payout?

Question

The dividend for the 6.25% preferred stock is payable on September 15, 2006 to preferred shareholders of record on September 1, 2006 at the rate of $3.25521 per share. Will I be eligible for dividend payout if I sell all my shares on Sept. 2?

Answer 1

Yes. The dividend goes to the owner of the shares on the "record date". Doesn't matter who owns them on the actual payment date.

Answer 2

of course!