The truth, the whole truth and nothing but the truth
Quote:
Originally Posted by
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.
Quote:
Originally Posted by
baller18
Yup, you need to sell after the ex date
WRONG!
Quote:
Originally Posted by
moosie_900
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
A little clarity* on a Friday
Quote:
Originally Posted by
baller18
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.