Will i get dividend payments?

longwalks1

I have bought shares in a company, who released this press release 2 weeks ago:

"All figures in US dollars
TORONTO — COMPANY NAME (NYSE: ABX)(TSX: ABX) today announced that its Board of Directors has declared a quarterly dividend of US12 cents per share, payable on December 15, 2010 to shareholders of record at the close of business on November 30, 2010. "

Does that mean if i still have the shares on 30 Nov, i will get the div payment on Dec 15th? What if i sell the shares between 30 Nov and 15 Dec, will i still get them? And does this release only apply to US shares, or ones on LSE too?

Thanks in advance

Lokolo

There are 2 dividend dates.

Ex-dividend and Dividend Payment

The Ex-dividend is the date in which you have to own the shares in order to get the dividend. The dividend payment date is when you would recieve money.

Doesn't matter if they are UK or USA based shares.

marvin

britishboy wrote: »

I have bought shares in a company, Does that mean if i still have the shares on 30 Nov, i will get the div payment on Dec 15th? What if i sell the shares between 30 Nov and 15 Dec, will i still get them? And does this release only apply to US shares, or ones on LSE too?

1. Yes you will get the divi

2. If you sell your shares after the record date and before the dividend you may get less for your shares as many "investors" buy just before and sell just after a divi announcement just to get the divi. So a share often pluges in value the week after the record date. You will however, if you sell on or after the 1st December (in this case), get the divi on the shares.

le_loup

marvin wrote: »

2. If you sell your shares after the record date and before the dividend you may get less for your shares as many "investors" buy just before and sell just after a divi announcement just to get the divi.

Not quite true. The share price drops on the ex-div date because the dividend payment reduces the worth of the company. People don't generally buy/get the divi/sell.

marvin

le_loup wrote: »

Not quite true. The share price drops on the ex-div date because the dividend payment reduces the worth of the company. People don't generally buy/get the divi/sell.

I beg to differ on that I know plenty that do buy for the divi and then sell soon as they can after the record date.

withabix

Why did you bother deleting the name BARRICK GOLD COMPANY and then leave their unique three letter stock exchange codes in your post??

pqrdef

marvin wrote: »

I beg to differ on that I know plenty that do buy for the divi and then sell soon as they can after the record date.

Does anybody ever make any money out of that?

le_loup

pqrdef wrote: »

Does anybody ever make any money out of that?

Can't see how. In a fantasy market where there is no change in share price, the price would reduce by the amount of the dividend on the x-date. Now, why would you buy at £5, take a dividend of say, 0.50 and sell at 4.50? Dividends are taxable, small capital gains are not. Makes no sense to me but marvin knows plenty of people who do but fails to say why. Perhaps he knows plenty of weird people.

longwalks1

marvin wrote: »

I beg to differ on that I know plenty that do buy for the divi and then sell soon as they can after the record date.

Thanks everyone, Marvin im very new to share dealing but have read/heard this a few times as well, it kinda makes sense

thanks again everyone

longwalks1

withabix wrote: »

Why did you bother deleting the name BARRICK GOLD COMPANY and then leave their unique three letter stock exchange codes in your post??

school boy error i guess, wasnt sure if we were allowed to mention names of companies on here or not

I live and learn

Lokolo

britishboy wrote: »

school boy error i guess, wasnt sure if we were allowed to mention names of companies on here or not

I live and learn

Admins don't come browsing here a lot unless theres a lot of reported abuse. You'll only get that if you start thread saying "BUY THIS BUY THAT". Like the gold rampers