What is the latest date I can invest in the S&P500 and still qualify for the end of year dividends?

Answer 1

To invest in the S&P500 you will need to use an index fund or an Exchange Traded Fund (ETF). The ETF that mimics the S&P500 is affectionately called the Spider - their ticker symbol is SPY.

The SPY has been paying dividends quarterly. And the last one of the year has been around the middle of December. About a month and a half before they expect to pay, the company will issue press release declaring the dividend and the appropriate dates.

You will have to buy the SPY before the "ex" dividend date if you want the dividend. It's called the ex dividend date because it is the first day it trades without the dividend. So if you buy on the ex date you will not get the dividend. The good thing is that the price of SPY will be reduced by the amount of the dividend so you get the stock cheaper.

For example lets say SPY declares a dividend of $.25 and they go ex dividend tomorrow. If the stock closes today at $140, it will be reduced by $.25 tomorrow or down to $139.75.
Let's say you bought one share at $140 to get the dividend. You pay $140 but get the dividend so your net cost is only $139.75. But then you have to pay tax on that $.25 so you now have a cost higher than what you would have paid for it on the ex dividend date without the dividend.

Answer 2

It is a very bad idea to wait until the last date to invest before dividends and capital gains which are distributed at the same time. Since the price of the fund trades at net asset value (and the ETF's so far trade very close to it also), the issuance of a dividend+CG decreases the net asset value so the price will fall equal to the dividend/CG. But, unless held in a 401k or ROTH IRA, you have to pay taxes on the dividend/CG so you will LOSE MONEY. Buy mutual funds after the distribution date or in the first half of the year so you will earn those gains first.

Answer 3

1st off, you cant invest directly into the S&P 500. It is an index, not a public company. You can invest in a fund that TRACKS the index or you can buy an ETF that also tracks the index.

Either way, you must check with the individual companies or ETFs (as there are many of them) to see when the ex-dividend date is for the last one of the year (obviously you have already missed 2006). Being that many companies offer these funds, each one will have a different ex-date and payment date.

Answer 4

So long as you are the owner on record, you will receive the dividends, it's as simple as that. If, for instance, one is recorded as the owner of the instrument at the time of purchase, one could wait until the moment before the dividend is announced to purchase the instrument and still be entitled to said dividends. You can pretty much buy it at any time of the year and still enjoy the benefits of dividends.

Answer 5

Any date before the announcement of the dividends giving out.

Answer 6

If you invest in an S&P 500 Index Fund ..dividends probably pay quarterly. You can go to any fund company website such as Vanguard...check the Index Fund...see when the fund pays its dividend.