Dividends from stock?

Question

I'm looking at buying a stock, they pay dividends on September 12. If I buy now will I qualify for the dividends?

Answer 1

When they announcement a dividend they also announce that it is for stockholders of record on a specific date. Check the dividend announcement.

Answer 2

You need to be the owner of the stock as of the ex-dividend date to receive the dividend. Remember two things however:

1. Your dividend will be taxed at your ordinary income tax bracket (you must declare the dividend as income on your 1040 to be filed with the IRS)

2. On the day the dividend is paid, the stock price will fall by the amount of the dividend (not counting supply / demand forces that influence price movement of the stock)

So lets say the stock price is $100 per share and the dividend is $5 per share....on pay date the share price will drop to $95 per share without other influences on price movement

Answer 3

If you buy the stocks before the ex-dividend date, then you qualify for the dividends. Chances are that you probably missed the ex-dividend date and will not to getting any.

The reason I say that is that from my experience with the stock market, dividends are usually paid within 2 weeks to 6 weeks of ex-dividend date. It is likely that the stock you are looking to buy had it's ex-div date, at the very least, before Augst 29th, 2007.

Answer 4

You have to own the stock and you did not say what it is. When you have a brokerage account-- when ever dividends are paid it is shown as a cash deposit. If you own a stock certificate and it has paid dividends---when you sell the certificate then you receive the dividents...-- cash it in...

Answer 5

Dividends have an "ex dividend" date. If you buy before that date, then you'll get the dividend, otherwise the seller will get them.

Answer 6

I'm pretty sure that stock dividends are taxed at 5/15% depending on your bracket as long as they are domestic companies or are incorporated in America.