Just started with individual stocks

[bigla]

Sorry if this is too dumb a question. If I own shares with an ex-dividend date of 5/13 and sell them after that date but before the payout date, do I still get the dividend? If so how does that work if the sale goes through before the payout. Will the broker still get the cash for my account?
Thanks
Larry

 

[braumeister]

You've got it.
The owner on the ex-div date gets the div, even if he or she no longer owns it on the payout date. The div will go into your account on the payout date.

 

[MichaelB]

I believe the key is the date of record. One needs to be the owner of record on the close of that date. Ex-dividend is the date when the dividend is removed from the price of the stock but doesn't determine who gets it.

 

[bigla]

Thanks Braumeister and Michael B.

 

[pb4uski]

I believe the key is the date of record. One needs to be the owner of record on the close of that date. Ex-dividend is the date when the dividend is removed from the price of the stock but doesn't determine who gets it.

+1 it is usually payable to shareholders of record on a stated date. If you own the shares on that stated date (close of business I suspect) then you would receive the dividend.

 

[Onward]

I believe the key is the date of record. One needs to be the owner of record on the close of that date. Ex-dividend is the date when the dividend is removed from the price of the stock but doesn't determine who gets it.

So the ex-dividend date would be the trading day following the date of record?

 

[MichaelB]

So the ex-dividend date would be the trading day following the date of record?

I think each company, ETF or CEF decides it's own policies. A popular dividend stock is AT&T, here are their dates, taken from dividend.com

 

[MichaelB]

From the SEC website Ex-Dividend Dates

Ex-Dividend Dates: When Are You Entitled to Stock and Cash Dividends

[FONT=Verdana,Arial,Helvetica] Have you ever bought a stock only to find out later that you were not entitled to the next cash or stock dividend paid by the company? To determine whether you should get cash and most stock dividends, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."

When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information.

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. [/FONT]

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[rbmrtn]

As MichaelBs post shows, there are several dates of interest with a dividend.

The date of record is usually 2-3 days following the ex date. You have to buy before the ex date and be listed as a shareholder on the date of record to get the dividend.

Here's a link to dividend dates info

Dissecting Declarations, Ex-Dividends And Record Dates