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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 690.64+1.9%Feb 6 4:00 PM EST

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To: Johnny Canuck who wrote (46613)3/6/2011 7:10:52 PM
From: Cogito Ergo Sum  Read Replies (1) of 70561
 
divies made simple..

Ex dividend date is the important one.. and related directly to date of record by the number of days to settle.. ex div date is used to make it simple with no calculation required...

sooo.. to earn the dividend you simply need to have bought the stock up to and including the day BEFORE EX-DIV date.. so if the ex-div date is March 10. You get the dividend as long as you bought the stock before close of trading March 9. As of March 10 it is EX-DIV ie NO dividend until next one declared... That is why you see companies always declare the upcoming dividend..
Conversely if you sold the stock on EX-Div day... March 10 in the example.. you have captured the dividend.. providing you bought it on or before the 9th of March... Can't earn te dividend buying and selling on same day...

The Ex-div date is calculated from the days to settle the trade and the date of record of the dividend.. ex-div date of Thursday March 10 implies a date of record of March 15.. If you bought the stock on March 10 it only settles 3 business days later (up here anyway..) on March 15..

Just worry about the ex-div day.. that determines in practice if you get o not the dividend.. irrespective of the date it is actually paid...
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