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Share dividend payments
Glastoun
Posts: 257 Forumite
I read on a company website that the last dividends for 2012 would be paid to all shareholders that were on the register on a certain date in December. Is this usually the way it's done?
Can people really buy shares the day before, qualify for the dividend, and then sell them the day after? Does this affect share prices around the time of 'dividend registration day'?
Can people really buy shares the day before, qualify for the dividend, and then sell them the day after? Does this affect share prices around the time of 'dividend registration day'?
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Prices genrally fall when a share goes ex-dividend.0
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No, dividends only get paid to shareholders on a given date (when the divi amount gets announced), see above.
The announcement date is always well before the ex dividend (XD) date. Share prices do drop on the XD date so if you see odd drops (usually on a Wednesday) check to see if this is why.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Can people really buy shares the day before, qualify for the dividend, and then sell them the day after? Does this affect share prices around the time of 'dividend registration day'?
The answer must be yes. But there's no guarantee you would gain by so doing.However hard up you are, never accept loans from your friends. Just gifts0 -
This approach goes by many names but the most common is "dividend washing".
At its simplest, it's a way of tweaking your capital gain/loss versus dividend income. I tend to prefer the latter for my wife's portfolio so usually tend to buy !!! dividend, but I really don't bother too much about timing.
Some claim that the share price drop at the XD point tends to be less than the dividend but I've never seen any strong evidence for this.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Opening price of a share normally falls by the amount of the dividend on the day when it goes ex-div.
As the owner of the share is entitled to the dividend even if they sell the share.0 -
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Thanks coastline.
Useful site0
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