Dividend Question

[eytonxav]

If you own a stock on the ex-dividend date, but sell your shares prior to the date the dividend is paid, do you still receive your dividend or do you still need to have ownership on the date dividend is actually paid?

Doug

 

[wzd]

I believe you get it.

Wayne

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Definitions from www.troweprice.com

Ex-dividend date: The date on which the stock's price drops by the amount of a previously announced dividend. It is the day after the "record date," defined elsewhere in the glossry. Stocks trading "ex dividend" have an "x" next to their names.

Record date: The date that determines which shareholders will be paid the dividend or capital gain declared by a fund. Only shareholders who are invested in the fund at the opening of business on the record date will receive the distribution.

 

[cute fuzzy bunny]

Thats about right. If you look for the press release regarding the dividend (one is usually released), it usually says "paid on xx/xx for stockholders of record on yy/yy". If you owned the stock on yy/yy you'll get the dividend on xx/xx.

 

[eytonxav]

Thanks, I thought that was the case.

Doug

 

[eridanus2]

"You must own the stock 61 or more days during a 120-day period starting 60 days before the stock's "ex-dividend" date" in order to get the dividend tax break.

 

[eytonxav]

This was within an IRA, so the tax aspect will not come into play.