How long must I hold on to a stock before I can collect a dividend on it?

Question

Meaning when does a dividend happen. If I were to purchase a stock today and tomarrow is there earnings call, will I be eligable for the dividend?

On another note, how soon after an earnings call are dividends distributed?

As you can see I am clueless about the stock market.

Answer 1

Most companies issue dividends 4 times per year (once a quarter) so you could buy a stock just days before the "date of record" or 1 day after the date of record and wait 2 months, and 29 or 30 days to be eligible for the next dividend. Earnings calls have nothing to do with the dividend.
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Answer 2

Some companies pay out quaterly, semi-annual or annually. You must own the stock prior to the shares held on published date. Look at the investor's relations information on the company web site to see the date when the next dividend is paid. You will only receive the dividend for the shares held on prior to date (mm/dd/yy) date.

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Answer 3

Just to be clear, you need to buy the stock no later than the day BEFORE the ex-dividend date in order to receive the upcoming dividend. You can then sell it as early as the ex-dividend date itself and still get the dividend.

But in case you thought you'd make some easy money by buying just in time for the dividend, you won't. Reason is, the price of the stock drops by the approximate amount of the dividend on the ex-dividend date, so you gain nothing.

Answer 4

The above answer is slightly misleading. If it is a strong company the stock will only drop by about 85% of the dividend on average. So if you are willing to risk a few bucks it may be a decent payoff. Just make sure to cover your commissions.

Answer 5

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Answer 6

Most of the companies issue dividend quarterly per year. If you are purchased shares before the ex-dividend date you will be eligible to receive the dividend.

Answer 7

If you own a stock on the ex-date you are entitled to receive the dividend on the payable date. You can find out which stocks are paying dividends and when. Just go the following link and enter your stock symbol:

http://www.top10traders.com/Dividends.aspx

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http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 8

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Answer 9

Contact your Investor Relations Department.

Answer 10

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