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TenS2XS
Joined: 27 Jan 2008
Posts: 99
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 Posted: Sat Nov 07, 2009 7:45 pm Post subject: Ex-dividend date? |
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| If you own shares of a stock on or past the ex-dividend date, but sell those shares before the dividend pay date, do you still receive the dividend? |
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mfen
Joined: 21 Jun 2009
Posts: 394
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| Posted: Sat Nov 07, 2009 7:52 pm Post subject: |
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It is the record date that determines your dividends. Shareholder of record date are paid. Ex date is after record date.  moment of senior confusion, my mistake
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Maryanne
Last edited by mfen on Sun Nov 08, 2009 7:44 am; edited 1 time in total |
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pshonore
Joined: 28 Jun 2009
Posts: 352
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| Posted: Sat Nov 07, 2009 8:00 pm Post subject: |
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| mfen wrote: | | It is the record date that determines your dividends. Shareholder of record date are paid. Ex date is after record date. |
Not quite - you must own the stock at the close of business on the day prior to the ex-dividend date in order to get the payment. Ex-dividend literally means without the dividend.
Since it takes two business days to trnasfer ownership, the record date is generally two business days after the ex-div date.
From the SEC website:
"Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend." |
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JDCPAEsq
Joined: 05 Mar 2007
Posts: 568
Location: Southwest Florida
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| Posted: Sat Nov 07, 2009 8:30 pm Post subject: |
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| mfen wrote: | | It is the record date that determines your dividends. Shareholder of record date are paid. Ex date is after record date. |
You have it reversed. You must own the stock on the ex-dividend date to get the dividend. Record date is not applicable.
John |
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DSInvestor
Joined: 04 Oct 2008
Posts: 1711
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pshonore
Joined: 28 Jun 2009
Posts: 352
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| Posted: Sat Nov 07, 2009 8:46 pm Post subject: |
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| JDCPAEsq wrote: | | mfen wrote: | | It is the record date that determines your dividends. Shareholder of record date are paid. Ex date is after record date. |
You have it reversed. You must own the stock on the ex-dividend date to get the dividend. Record date is not applicable.
John |
Incorrect - read the quote from the SEC in my post. If you buy on the ex-date you will an owner on the company books one day AFTER the record date. |
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JDCPAEsq
Joined: 05 Mar 2007
Posts: 568
Location: Southwest Florida
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| Posted: Sat Nov 07, 2009 9:07 pm Post subject: |
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| pshonore wrote: | | JDCPAEsq wrote: | | mfen wrote: | | It is the record date that determines your dividends. Shareholder of record date are paid. Ex date is after record date. |
You have it reversed. You must own the stock on the ex-dividend date to get the dividend. Record date is not applicable.
John |
Incorrect - read the quote from the SEC in my post. If you buy on the ex-date you will an (sic) owner on the company books one day AFTER the record date. |
I'm talking about the seller per the question posed by the OP. Thanks for attempting to quickly correct me, however. After majoring in corporate law, I'm reasonably familiar with the terminology.
John |
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