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Thread: Dividend Question

  1. Default Dividend Question

    If you sell before the Ex-Dividend date, you do not receive any dividend money?

    Lets say I held a dividend paying stock for nearly an entire quarter, and sold right before the ex-dividend date...if I don't get the money, who does? It seems to me, that it would be partially payable, due to holding it for nearly the entire time?

  2. Default

    There is no partial payment on dividend. They are not prorated. I believe whoever owns the stock on ex-dividend date gets the dividend credit. The stock price automatically drops the next day by the dividend amount. So people who buy the stock before ex-dividend date and sell right after will get a wash - if not counting the market price fluctuations. And whoever shorted the stock on ex-dividend date will be debitted the dividend amount.

  3. Default

    The person you sold it to, as Bolimomo said. You need to buy the stock before the ex-dividend date and hold it at least until the morning OF the ex-dividend date to receive the dividend. It's not something to fret about since you don't really gain anything with the dividend anyway (because of the aforementioned drop in the stock price).

  4. Default

    Actually it's whoever owns it the day prior to ex-dividend. All ex-dividend means is without dividend. Therefore the ex-dividend date is the date the stock trades without the dividend due. The ex date will always be two days before the record date due to regular way settlement of three business days.

  5. Default

    I'll have to look this up. I'm familiar with such a phenomenon with mutual fund shares, but not individual stocks. Aren't the value of stocks a function of what the market prices the shares?

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