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Strategies & Market Trends : Dividend investing for retirement

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To: Chris Forte who wrote (3581)2/1/2010 5:52:15 PM
From: Steve Felix  Read Replies (2) of 34328
 
I agree about the board. I like reading the different points of view.

Most times I would rather buy on the ex-dividend date when the stock price falls. I figure I invest fewer $$ for a smidgeon higher yield. Just my preference.

With an ex-div. date of Feb. 3rd, Wednesday, you would count back three days plus the day of your trade. Buying last Thursday would make you the owner of record tomorrow, Feb. 2nd.

Thursday ( T = trade date) - Friday, Monday, Tuesday.

< Why All These Dates?
Ex-dividend dates are used to make sure dividend checks go to the right people. In today's market, settlement of stocks is a T+3 process, which means that when you buy a stock, it takes three days from the transaction date (T) for the change to be entered into the company's record books.

To ensure that you are in the record books, you need to buy the stock at least three business days before the date of record, which also happens to be the day before the ex-dividend date. >

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