Share dividend - how does this work please?

Turtle

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?

Thrugelmir

On the day. As it's the cash that will buy the shares.

Turtle

Thanks for your help. I suspected that was the case but was hoping I'd be wrong!

Jsscmm

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!