Ex Div Dates

[edm]

Hi everyone,

This is going to sound stupid but I seem to have confused myself with ex div dates...just hoping I can get some clarification.

If I were to sell a particular share on the ex div date itself, will I still get the div from that previous share? Or do I have to wait until the day after the ex div date?

Thank you for your time..

Ed.

[baller18]

Yup, you need to sell after the ex date

[edm]

Thank you both!

Have a great weekend

[CJ]

you also need to make sure you hold the share on the record date to actually receive a divvy. can't just buy it the day before unfortunately!

my friends tactic is to time an entry before the record date, hold after ex div then sell once the sp has recovered.so they aren't buying for the div per se, but because the price drop is normally less than the div? Any particular shares or things to look for? Dies imputation have an effect?

[Snow Leopard]

Hi everyone,

This is going to sound stupid but I seem to have confused myself with ex div dates...just hoping I can get some clarification.

If I were to sell a particular share on the ex div date itself, will I still get the div from that previous share? Or do I have to wait until the day after the ex div date?

Thank you for your time..

Ed.


Yup, you need to sell after the ex date WRONG!


you also need to make sure you hold the share on the record date to actually receive a divvy. can't just buy it the day before unfortunately!... WRONG!

The ex-dividend date it the first date that the share trades without the dividend attached.
If you sell your shares on ,or after, the ex-dividend date you get the dividend.
You get the dividend if you 'own' the shares at the close of business on the (working) day prior to the ex-dividend day.

The record date is 2 working days after the ex-dividend date, and is when the 'paper work' catches up with the buys and sells and when the register is read for the dividend. You do not need to own the shares until or on this date.

Payment date is further on and when you actually get your paws on the dividend monies.

As a for instance Opus OIC went Ex-Dividend today, Friday 13th September 2013.
(The record date is 17th September and the payment date is 1st October).

If you own them yesterday at close of business the 4c dividend will be yours, and you can sell them today.
OIC closed at $1.91 yesterday, when I last looked at it NZX quoted it at $1.86 down 1c, that is down 1c on the theoretical ex-div price of $1.91-0.04 = $1.87.

Best Wishes
Paper Tiger

[baller18]

Isn't it 3 working days paper tiger?

[Snow Leopard]

Isn't it 3 working days paper tiger?

It is 3 working days from the day when you have to own the shares (at COB) which is the day before the ex-dividend day.

So 3 -1 = 2 days after ex-div is record.

Sorry if I created any confusion there.

As always Best Wishes
Paper Tiger

*I believe clarity is a type of red wine.

[baller18]

Thanks heaps tiger!!

[Food4Thought]

AIR just went ex Divi... it will be interesting how soon they will announce Share Buy Back... possibly around or just after their Annual Meeting 27 Sept...

[nextbigthing]

WRONG!

WRONG!

The ex-dividend date it the first date that the share trades without the dividend attached.
If you sell your shares on ,or after, the ex-dividend date you get the dividend.
You get the dividend if you 'own' the shares at the close of business on the (working) day prior to the ex-dividend day.

The record date is 2 working days after the ex-dividend date, and is when the 'paper work' catches up with the buys and sells and when the register is read for the dividend. You do not need to own the shares until or on this date.

Payment date is further on and when you actually get your paws on the dividend monies.

As a for instance Opus OIC went Ex-Dividend today, Friday 13th September 2013.
(The record date is 17th September and the payment date is 1st October).

If you own them yesterday at close of business the 4c dividend will be yours, and you can sell them today.
OIC closed at $1.91 yesterday, when I last looked at it NZX quoted it at $1.86 down 1c, that is down 1c on the theoretical ex-div price of $1.91-0.04 = $1.87.

Best Wishes
Paper Tiger

Thanks Paper Tiger

So are you saying that record date effectively means pretty much nothing?

Also, you say you need to 'own' the shares at closing the day before the ex date. So say they go ex dividend on a Wednesday, if you put at order through on Tuesday with say ASB that was successful, do you 'own' the shares on that Tuesday and therefore collect the dividend, or does it take a couple of days 'for the paperwork to catch up' as you say and therefore the seller still collects the dividend as the sale hasn't been processed yet?

NBT

[Snow Leopard]

Thanks Paper Tiger

So are you saying that record date effectively means pretty much nothing?

Also, you say you need to 'own' the shares at closing the day before the ex date. So say they go ex dividend on a Wednesday, if you put at order through on Tuesday with say ASB that was successful, do you 'own' the shares on that Tuesday and therefore collect the dividend, or does it take a couple of days 'for the paperwork to catch up' as you say and therefore the seller still collects the dividend as the sale hasn't been processed yet?

NBT

Yes, the record date is of little concern.
For your example:
If you buy on Tuesday, then you 'own' the shares and get the dividend.

Friday will be the record date and it will be during Friday that your buy is recorded on the register and from which your new holding is read and allotted the dividend.

Best wishes
Paper Tiger

[blackcap]

Yes, the record date is of little concern.
For your example:
If you buy on Tuesday, then you 'own' the shares and get the dividend.

Friday will be the record date and it will be during Friday that your buy is recorded on the register and from which your new holding is read and allotted the dividend.

Best wishes
Paper Tiger

Yes you do own the shares if you buy them on Tuesday but since they have not been registered to your name (as this is done on T+3) ... it is your broker who will give you or pass the dividend on to you.

[Snow Leopard]

Yes you do own the shares if you buy them on Tuesday but since they have not been registered to your name (as this is done on T+3) ... it is your broker who will give you or pass the dividend on to you.

NO, That went out the window a while ago now.

It used to be that the record date was the day before the ex-dividend date and that the brokers sorted out dividends from buys and sells in the few days before as you state.

But they changed to the current ex-dividend before record date so that is no longer the case and the registry does it all as detailed previously.

Same is true for rights issues, etc, etc

Best Wishes
Paper Tiger

[blackcap]

NO, That went out the window a while ago now.

It used to be that the record date was the day before the ex-dividend date and that the brokers sorted out dividends from buys and sells in the few days before as you state.

But they changed to the current ex-dividend before record date so that is no longer the case and the registry does it all as detailed previously.

Same is true for rights issues, etc, etc

Best Wishes
Paper Tiger

Thanks Paper Tiger for clarifying that and apologies to other formites for my mistake. It used to be so much simpler didnt it.

[Snow Leopard]

...It used to be so much simpler didnt it.

I remember, many years ago, having a long 'discussion' with my broker about applying for extra under-subscription shares in an SPP having bought in the day before the record date.

The young lady I was originally dealing with had a sudden headache and had to pass me on to a more senior member of staff who then remembered that has his wife was playing badminton he was supposed to collect the dog from the groomers half an hour ago and the person who finally dealt with me retired on health grounds shortly after :(.

So I and my broker think it is a lot more straight forward now.

Best Wishes
Paper Tiger

[Minerbarejet]

you also need to make sure you hold the share on the record date to actually receive a divvy. can't just buy it the day before unfortunately!

my friends tactic is to time an entry before the record date, hold after ex div then sell once the sp has recovered. IF it recovers - been caught with that one, TEL, ALF, PGW, and a few other
unmentionables.

[craic]

Looking to sell up my TEL block at the last minute IF the price rises to my figure, forego the dividend and buy back after the dividend date low enough to make a greater profit than I would from sitting tight and taking the dividend. I may be able to do it but it's all a numbers game.

[baller18]

I use to hold westpac and ANZ, after the dividend it rebounds in like 3-5 days... Not too sure about tel, I'm thinking getting into skycity..

[QOH]

Looking to sell up my TEL block at the last minute IF the price rises to my figure, forego the dividend and buy back after the dividend date low enough to make a greater profit than I would from sitting tight and taking the dividend. I may be able to do it but it's all a numbers game.
Interesting craic how low are you hoping it will go ex div? I bought some a couple of weeks ago, ($2-21)
decided to pick up the div and hopefully sell when it recovers a bit, however if it has a good gain tomorrow, I may do the same as you.

[craic]

I expect it to drop to below 220, possibly as low as 210 after a couple of weeks. Past experience is that the price often holds until after the payout date - that is the 4th October, my birthday. I suspect that some people are unaware of all but the payout dates and tend to hold to that point - 'ti they see the money. I tend to trade on a falling market and anything over 2cps is worth while but the dividend causes me to want over 12cps to take into credit the 75% inputted tax.

[brucey09]

Snrs.
I still no understand - to sell Cnu last date with no dividend?
please.

[macduffy]

CNU are currently trading cum div - ie the buyer gets the div, the seller doesn't. They go ex div on 25 September. Trades from that date onwards mean that the seller gets the div that is paid on 11 October. Therefore, to avoid being paid the div, one would have to sell before 25 September.

[brucey09]

Snr. Macduffy
Muchas gracias so I selling 24 no dividends yes

[macduffy]

Snr. Macduffy
Muchas gracias so I selling 24 no dividends yes

Correct. Note that these dates apply to the NZ register.

http://www.chorus.co.nz/dividend-information

[craic]

"A good gain tomorrow" should read or tuesday The date on the NZ exchange is 18th Sept. or wednesday. !6th for the Aust. exc. I have mine on the block at 232 and they have reached 231 but I have to be diciplined and hang on even if its only a cent.
Interesting craic how low are you hoping it will go ex div? I bought some a couple of weeks ago, ($2-21)
decided to pick up the div and hopefully sell when it recovers a bit, however if it has a good gain tomorrow, I may do the same as you.

[QOH]

"A good gain tomorrow" should read or tuesday The date on the NZ exchange is 18th Sept. or wednesday. !6th for the Aust. exc. I have mine on the block at 232 and they have reached 231 but I have to be diciplined and hang on even if its only a cent.

You probably got that by the end of the day, I weakened and put mine on at 233 didn't quite get there. Now I don't know whether to pull the order or not. Probably a bird in the hand etc...

[craic]

Yes, got my 232cps at the last minute and its a great feeling. Now to wait for the drop $370 per cent of drop. 20cps would be nice but 30cents would be better.

[Wolf]

Fletcher Ex Dividend date is 25th of September.
I'm planning on getting the dividend then selling so do i sell on the 26th of September?

[QOH]

I presume you can sell 25th and you will be holder of dividend.
Remember theoretically the share might be worth 17 cents less that day ( or whatever the div amount is)

[macduffy]

Yes, "ex div" means the transaction is ex - without - the dividend to the buyer.

[Wolf]

Cheers, any specific time on the 25th? I realise the share price will drop so would like to exit as quickly as possible.
QOH i realise the price will drop in accordance to the dividend but i would rather take the dividend and exit than try to pick the peak price before the dividend.

[craic]

The night of the 24th - if you still have them when the market closes on 24th then you have the dividend. Watch tel as an excercise, tomorrow is the date today the shares have gone up to 235cps and I sold at 232. tomorrow they should drop like a stone and get right back to 220 before long or lower. the time is the time the market closes on the day before the date.

[Vaygor1]

My cousin topped up her TWR shares on 1-Oct-2019, the day before the Record Date (7:00pm 2-Oct-2019) for determining entitlements to purchase 1 in every 4 shares held at 56c/share under TWR's current Renounceable Rights Offer.

Her top-up was not huge compared to the amount she already held, but it appears for her top-up part only, she is not entitled to the 1 in 4 offer.

From this thread (which deals mainly with dividend ex, record, and payment dates) it appears she topped up a day or two too late.

Can anyone please confirm or otherwise?

[couta1]

My cousin topped up her TWR shares on 1-Oct-2019, the day before the Record Date (7:00pm 2-Oct-2019) for determining entitlements to purchase 1 in every 4 shares held at 56c/share under TWR's current Renounceable Rights Offer.

Her top-up was not huge compared to the amount she already held, but it appears for her top-up part only, she is not entitled to the 1 in 4 offer.

From this thread (which deals mainly with dividend ex, record, and payment dates) it appears she topped up a day or two too late.

Can anyone please confirm or otherwise? Yes a day too late.

[Snow Leopard]

She bought ex-rights if she bought on 1-Oct.

30-Sep was the last day of trading with the rights attached

[Vaygor1]

She bought ex-rights if she bought on 1-Oct.

30-Sep was the last day of trading with the rights attached


Yes a day too late.

Thank you Couta and Snow Leopard... much appreciated. I will let her know.


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