Selling Dividend Paying stocks

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Selling Dividend Paying stocks

Post by chabil » Wed Jan 11, 2017 4:05 pm

I am transferring some stocks to my son (gift) which will be sold and put into his Roth.
I am bit confused as to what happens to the dividends in this case. Is there an optimum time to sell these stocks so those dividends pertaining to these shares are not lost?
Thank you.

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Joined: Thu Mar 01, 2007 8:00 pm

Re: Selling Dividend Paying stocks

Post by livesoft » Wed Jan 11, 2017 4:13 pm

The dividends are never lost since dividends are embedded in the share price until ex-dividend date whereupon the dividend will be paid to shareholder of record a little bit later. There is no way to "lose" the dividend.
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