The following definition should help you understand when you can get a dividend from a stock:
# Ex-date or Ex-dividend date– On (or after) this date the security trades without its dividend. If you buy a dividend paying stock one day before the ex-dividend you will still get the dividend, but if you buy on the ex-dividend date, you won't get the dividend. Conversely, if you want to sell a stock and still receive a dividend that has been declared you need to sell on (or after) the ex-dividend day. The ex-date is the second business day before the date of record.
# Date of record– This is the date on which the company looks at its records to see who the shareholders of the company are. An investor must be listed as a holder of record to ensure the right of a dividend payout.
# Date of payment (payable date) – This is the date the company mails out the dividend to the holder of record. This date is generally a week or more after the date of record so that the company has sufficient time to ensure that it accurately pays all those who are entitled.
2006-12-04 09:47:38
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answer #1
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answered by koko 2
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First -- it has to pay dividends. Not all stocks do.
If it is a dividend paying stock -- then it probably pays quarterly. This means that the longest you would have to hold it is three months. The shortest period? One day. A few days before the stock pays the dividend it trades Ex-Dividend (without dividend). Those who buy it that day or later do not get the dividend. But if you buy it on the day before it goes ex-dividend, then you will get the next dividend -- which usually gets paid about a week later.
2006-12-04 09:13:47
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answer #2
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answered by Ranto 7
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Hold until after the "x-dividend" date. It is the date the company names as the date the dividend is declared. If you own the stock on the date the dividend is declared, you get the dividend. They are usually paid quarterly.
2006-12-04 08:46:02
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answer #3
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answered by regerugged 7
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another tip: dont buy a stock a day before its going to give a specail dividend... the stock price will open the amount of the dividend lower, so you will probably not make any money. there are stocks like ticker CLM who pay dividends monthly and most people use the dividend to purchase more of the stock so it brings its float shares low and its demand very high... its at 8.50 a share right now, i suggest you buy some
2006-12-04 09:56:57
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answer #4
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answered by mashc10 2
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To be a stockholder of record you should have offered the inventory and the settlement date ought to ensue on or previously the record date. What you truly favor to understand is the Ex-dividend date. it truly is for sale on economic web pages and dividend information releases. If the Ex date is June 12, that means that those determining to purchase the inventory that day are literally not eligible to receive the dividend. in case to procure the day previously, June 11, you ought to be eligible to receive the dividend. Oh, because you look attracted to procuring and promoting for the dividend, do not ignore that the day a inventory is going ex-dividend, this is going to likely be opened down the quantity of the dividend. So if the quarterly dividend is .50 percentage, the inventory will be opened decrease with techniques from .50 and after that, the inventory is loose to commerce anyplace the market forces take it. good luck and save asking good questions.
2016-11-30 03:30:00
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answer #5
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answered by Anonymous
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