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

There will be a date stated, called the ex dividend date, where the owner of record at that time will be the one to get the dividend.

Realize that the price usually adjusts to compensate for the dividends. And since dividends will be taxable to the recipient whether they actually receive cash or just reinvest it, there can be tax advantages to waiting until AFTER the ex-dividend date to buy. The same logic applies to purchase of mutual funds - buying the day BEFORE an annual distribution of gains can cost you in taxes.

Answer 2

Depends upon the date that the company uses for the dividend payment. If the payment will be for shareholders of record as of Dec 31, 2006, it's already too late to buy shares and get the dividend.

Answer 3

You need to buy the day before the ex dividend date. The Ex dividend date is when shareholders are accounted for and will receive the dividend, special or not.

Answer 4

They company will announce the date that the stock goes, "ex-dividend". The ex-dividend date is latest that you must be a stockholder in order to collect the next dividend payment.

Answer 5

unless you are going to buy over a million shares and plan on the stock going up very quickly, you should just buy and hold. The dividend will not make you rich. You need to change your goals to a more realistic position.

Answer 6

No, when they company is paying a dividend/bonus, they give a cut off time for you to benefit.