What does this mean?

ajbell

Just sold 2192 Tesco shares yesterday and it says on the contract note "Bargain condition : ex dividend" does this mean i get the next dividend or not?. Thanks.

xylophone

http://moneyterms.co.uk/!!!-dividendex-dividend/

ajbell

Page not found

xylophone

"A share is said to be trading with dividend when the payment of a dividend is due in the near future and investors who buy the share now will receive the dividend. Once the security goes ex-dividend buyers will not receive the dividend; it will go to the seller who held the shares immediately prior to their going ex-dividend.

When a dividend is paid, it is paid to holders who are on the register (the company's register of shareholders in the case of shares) on a particular date, called the record date. In order to be on the register of shareholders on the record date a buyer needs to purchase the shares early enough that the trade will be settled (i.e. the shares transferred to the buyer) by the record date.

When a share goes ex-dividend, the price will drop (other things being equal) by the amount of the dividend."

Ifts

ajbell wrote: »

Just sold 2192 Tesco shares yesterday and it says on the contract note "Bargain condition : ex dividend" does this mean i get the next dividend or not?. Thanks.

Did you hold the 2192 Tesco shares before they went Ex-Div on the 25-Apr-12?

If you did then you will get the final dividend of 10.13p per share paid on the 06-Jul-12.

https://www.share.com/cgi-bin/oicgi.exe/inet_tsc_dl2?epic=TSCO

As you can see from the graph below the shares went down roughly by the same amount as the final dividend payment when they went ex-div.


https://www.share.com/cgi-bin/oicgi.exe/inet_tsc_dl2?epic=TSCO&csi=10091&action=charts

ajbell

Yes, ive held them since february.

Ifts

In that case you should get the dividend payment (~£220) in July.

I also bought some Tesco shares this February (although did hold them for last couple of years but sold in Dec-11, the timing was purely down to luck on that sale as I needed some funds for something else), after the profit warning I managed to get back in at just over 313p (315p inc commission & SD), so hopefully after July's dividend they will stand me closer to the 300p mark and I intend to keep hold of them for the long term.