dividends

pfftm

i held shares in a company that had a financial year from 1st of june to the 30th may, i sold my shares on a dealing day in july, am i entitled to a full dividend for 2013-2014 i had held the shares before that financial year.
many thanks

Masomnia

If you hold the shares on the ex-dividend date then you're entitled to the full dividend announced for that date; it's not pro-rata or anything.

Suppose you buy some shares on the 13th of the month, the ex dividend date is the 14th for 4p per share, you sell them a few days later, you still get the 4p per share.

masonic

You're entitled to any dividends where you've held the shares up to the appropriate ex-dividend date, so in practice you might still be entitled to dividends paid out up to a few weeks after you have sold.

k0y

Masomnia wrote: »

If you hold the shares on the ex-dividend date then you're entitled to the full dividend announced for that date; it's not pro-rata or anything.

Suppose you buy some shares on the 13th of the month, the ex dividend date is the 14th for 4p per share, you sell them a few days later, you still get the 4p per share.

So if I understand this right, I could just invest in a company that I know will have a dividend a day or two after and make some quick cash? Surely I must be misunderstanding something here.

frugalmacdugal

Hi,

normally the share price drops by the dividend amount.

Thrugelmir

k0y wrote: »

So if I understand this right, I could just invest in a company that I know will have a dividend a day or two after and make some quick cash? Surely I must be misunderstanding something here.

When a share goes ex-dividend. The quoted price will drop by the dividend to be paid per share.

pfftm

the company claim that because I was not on the share register on the 5th september they are not paying a dividend on the trading year 2013/2014. can they do this

jimjames

pfftm wrote: »

the company claim that because I was not on the share register on the 5th september they are not paying a dividend on the trading year 2013/2014. can they do this

Yes.

If you are not on the share register on the correct date then you do not qualify for the dividend. Equally you probably got a higher price for your shares as a result so unlikely to have lost out massively.

Thrugelmir

pfftm wrote: »

the company claim that because I was not on the share register on the 5th september they are not paying a dividend on the trading year 2013/2014. can they do this

If you sold the shares before the annual results announcement then yes.

IronWolf

A company's year end for financial statements doesn't really affect when dividends are paid. They can announce a dividend in the report, but set the record date in the future. So if your no longer a shareholder on the date they specify then you wont receive the dividend.