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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (26209)	1/1/2017 11:44:00 AM
From: Thehammer	Respond to of 34328

On US Exchanges, the ex dividend date (for nominal cash dividends) as two business days prior to the announces record date. It is intentionally set this way so that a buyer, purchasing a security on the day before the record date will be a "holder of record" on the record date (assuming normal 3 day settlement). If you BUY before the ex-date, you are entitled to the dividend. You can sell on or after the ex-date and retain ownership of said dividend. Brokerage firms have systems in place to track purchases and sales when the normal ex - record date relationship doesn't apply. An exchange *may* declare a different ex date other than 2 business days before record for 2 main reasons: 1) the company did not properly announce the dividend (this is rare for exchange traded securities) or if the company is paying a large distribution as a percentage of its market value (which I think is around 20-25% or greater) to invoke this clause. An example might be a preferred stock that is paying several years worth of dividends in arrears or a company paying a "special" dividend.

To: Investor2 who wrote (26209)	1/1/2017 11:50:23 AM
From: the traveler	1 Recommendation Recommended By santafecb Respond to of 34328

There are several important dates associated with dividends. However only the x-dividend date is important for your specific question. If you buy the stock before the x-dividend date and still hold it at the close of the market on the day before the x-dividend date --you have yourself a dividend. You can then sell on the x-dividend date or later--or not--doesn't matter. For example, if your buy order is the last trade on the day before x-dividend date and your sell order is the first trade on the x-dividend date--or not--you are the proud owner of the dividend.

To: Investor2 who wrote (26209)	1/1/2017 12:07:05 PM
From: berniel	Respond to of 34328

Yes, It's important to watch the settlement date and record date. Most stocks settle in 3 days so if you sold on on the ex dividend date 1/1 and the record date was 1/3 you would receive the dividend. What I watch for especially planning on selling is the earnings and ex-div date. If the Record date is after earnings. Holding for the dividend is not worth the risk. Because most likely the run up on the stock into earnings will more than make up for the dividend. A bad earnings announcement, I found out can cost you more than the dividend your waiting to receive. Also Some company record dates can be as much as a month out or before the ex-date. You have to plan your buy and sells accordingly. "That's why most ex-dividend announcements say if held in account on record date." Hope I answered your question Happy new year Bernie

To: Investor2 who wrote (26209)	1/1/2017 4:14:48 PM
From: Paul Senior	2 Recommendations Recommended By berniel research1234 Respond to of 34328

How's this sound for tying together those dates you mentioned?: Consider a company that's declared a dividend on its stock payable Feb 1, 2017 to stockholders of record Friday, Jan 6. The ex-dividend date consequently is 2 days before that, or Wed, Jan 4. "Ex" means without. If someone were a buyer of the stock on Wed. Jan 4 they would not get the Feb 1 dividend -- the stock trades "without" the dividend, i.e. is ex-dividend. Most stocks/stock exchanges use the T+3 rule. (Afaik, and we're moving to T+2 in 2017). This means if somebody wanted to buy the stock in time to get that Feb 1 dividend, they need to be on the company's books on that date of record (i.e. Friday, Jan 6). Which means their purchase transaction has to have settled on that Friday Jan 6 at the latest. For the stock to settle on Friday, it means their purchase (trade date) has to have been made Tue, Jan 2. That is, Trade date Tue + 3 business days = settlement date = Friday. Tuesday is the last day to buy the stock, in order for the trade (purchase) to settle and for you to be on the company record books to get the dividend. (Of course, if you bought and have held the stock before Tue, Jan 2, you're already on the record books, and you get the dividend.) Looking at it somewhat differently, if somebody bought the stock Wed (their trade date), the stock wouldn't settle until T+3 or Monday (Jan 9). That's when they'd be on the books (on the record) -- they'd not be on the record books Friday, and therefore they're not going to get the Feb 1 dividend. I write this to reinforce/review/clarify what I believe to be correct. Sometimes this can be a confusing issue to me, even after many decades of being in the market. For example, these are the "requirements" just for stocks generally, For bonds, funds - I believe they may be different.