Share dividend - how does this work please?

Turtle
Turtle Forumite Posts: 996
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The next HSBC share dividend is paid tomorrow, I get mine in shares. Do I get shares based on the share price tomorrow, or is it based on the share price the day the dividend was announced?

The price has gone up about £1 a share in that time so it will make quite a difference in the amount I receive.

Can anyone help please?

Comments

  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    On the day. As it's the cash that will buy the shares.
  • Turtle
    Turtle Forumite Posts: 996
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    Thanks for your help. I suspected that was the case but was hoping I'd be wrong!
  • Jsscmm
    Jsscmm Forumite Posts: 147
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    The value you get is the same, whilst the number of shares may be lower, each is worth more. So overall, the change in price hasn't hurt your dividends and I assume a £1 price increase is nice for the shares you already held if you still have them!
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