Will i get dividend payments?

longwalks1

Thanks Lokolo

jimjames

One thing to bear in mind based on the info there is that the dividend will be paid in CDN or US dollars. Unless you have an account to pay it into you could lose virtually all the dividend payment in bank charges to cash it. You may already have this sorted but it is something to consider for foreign currency dividends.

Thrugelmir

jimjames wrote: »

One thing to bear in mind based on the info there is that the dividend will be paid in CDN or US dollars. Unless you have an account to pay it into you could lose virtually all the dividend payment in bank charges to cash it. You may already have this sorted but it is something to consider for foreign currency dividends.

Often makes direct holding of foreign stocks not worthwhile for small shareholdings. As also withholding tax is applied before payment is made.

marvin

le_loup wrote: »

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.

I didn't say I understood it just that I know plenty that do they recon they make money at it have never seen how (or I would be doing it too) as unless you sell at the high point you are losing capital value which as far as I can see outstrips the divi paid.

If it is as you say then to make sense the share price would rise with the divi value (can you point to any that have?) and would fall with exactly the value of the Divi (Can you point to any that have?).

Look at the share purchase/sale profile of a share coming to record date and look at what happens especially after record date. Not saying happens with all shares just some.

Thrugelmir

marvin wrote: »

If it is as you say then to make sense the share price would rise with the divi value (can you point to any that have?) and would fall with exactly the value of the Divi (Can you point to any that have?).

Market makers discount the share price at the opening on the day the share goes XD.

marvin

Thrugelmir wrote: »

Market makers discount the share price at the opening on the day the share goes XD.

And why do they do this? Because they know there will be plenty of sellers.

lvader

It doesn't always happen though, some stocks have been known to go up on ex-dividend date.

marvin

lvader wrote: »

It doesn't always happen though, some stocks have been known to go up on ex-dividend date.

Which in itself is the crux of the matter shares go up and down for a whole host of reasons. (any all or none of us could be right (or wrong) all at the same time!) I have had shares go up after divi (which is why I said risk getting less it is never certain) but these have been generally undervalued shares punching well below their rate often because their divi action has not been noticed by the wider share buying public. I had one share that yielded (for my personal yield which is what I have invested vs the income for the year) 11% it then went up and then plummeted in value after a couple of months.

The general full priced blue chip will probably drop in value xd.

chookie1

le_loup wrote: »

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.

There is money to be made in it, but typically only if you're working for an hedge fund / investment bank with very low trading costs - something like 5bp (0.05%) and favourable tax location so you don't pay dividend tax. There are plenty of academic studies out there to show that if you do this systematically, you make enough money to make it worthwhile, but it's not very much on any given stock so you have to have very low frictional costs and do it in large amounts on as many stocks as possible. Not really a game for retail traders.

le_loup

marvin wrote: »

And why do they do this? Because they know there will be plenty of sellers.

No, it's because the NAV has reduced. If the company was woth x when it held the dividend value with no liability to pay it, it must now be worth x-divi now it has that liability. Of course the price may change due to any number of other reasons but the NAV is imutable.