if one company going to gave bonus/dividend on 24th feb. which is the perfect date to buy those company shares

Question

if one company going to gave bonus/dividend on 24th feb. which is the perfect date to buy those company shares. i mean can i buy it on 23rd feb. or some time period is set by sebi for bnus/dividend ?

Answer 1

Whenever a company annouces a dividend distribution, there is a mention to an ownership date. For example, UPS announced "The Board of Directors of UPS (NYSE:UPS), citing its confidence in the company's financial position and prospects for growth, today increased the quarterly dividend to $0.42 per share from $0.38 per share on all outstanding Class A and Class B shares. The dividend is payable March 6, 2007, to shareholders of record on Feb. 20, 2007". In this example, you have to be the owner of shares as of february 20,2007"
Hope this helps
eboudames

Answer 2

There is no perfect date anymore once it has been announced.

You can buy the stock now and receive the dividend, or you can buy it after the dividend has been allocated, because at that moment the price of the stock will drop with the same value as the dividend (all other things being equal).

Answer 3

the company sets in a record date..u can look it at the corporate details in ur broker terminal..
best bet wud be to buy a share before 2 weeks from the day since if u see usually the price keeps rising few weeks befor the dividend days.. even a month wud be better to reap great returns in short term plus the fruits(dividend)

Answer 4

You'd need to buy it no later than the day before the ex-dividend date to receive the dividend.

Answer 5

I think you would have to buy it on feb 19 or 20, because usually the ex-date is 2 days before record date... To be on the safe side just buy it on the 19th.