IT Ex Dividend Date Sale

MonroeM
MonroeM Posts: 174 Forumite
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in Savings & investments
If I sold my holding in an IT on the ex dividend date (or is there a cut off time/point), will I still receive the dividend or should I sell the day after the ex dividend date to be sure I receive the dividend?

Comments

  • le_loup
    le_loup Posts: 4,047 Forumite
    No. The ex dividend date is the date when it becomes ex dividend - naturally. You need to sell on the day before the ex dividend date to get the dividend - naturally.
    Why do you want to do this anyway?
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    Hi,


    and the share price will usually drop by the value of the dividend.


    Can't have your cake and eat it too.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    le_loup wrote: »
    No. The ex dividend date is the date when it becomes ex dividend - naturally. You need to sell on the day before the ex dividend date to get the dividend.

    Surely you'd need to buy before the ex-div date to get the dividend.

    If you sell on or after the ex date the seller retains the dividend.
  • ColdIron
    ColdIron Posts: 9,039 Forumite
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    If you sell before the ex-dividend date you also sell the rights to the dividend. If you sell after market open on the ex-div date (usually a Thursday for stock traded on the LSE) you are entitled to the dividend. You don't need to wait an extra day
  • le_loup
    le_loup Posts: 4,047 Forumite
    Vortigern wrote: »
    Surely you'd need to buy before the ex-div date to get the dividend.

    If you sell on or after the ex date the seller retains the dividend.

    Obviously it was too early in the morning for me. 9:12 barely out of bed. :o
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    [FONT=Verdana, sans-serif]If you want the dividend as capital then sell the day before the ex-div date but if you want it as revenue sell on the ex-div date.[/FONT]
  • george4064
    george4064 Posts: 2,811 Forumite
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    I've put together a worked example which should help.

    ABC plc announce a dividend of 5p per share, investors who hold shares at the close of play on 1st August 2018 will be eligible for the dividend and payment date is 31st August 2018. Therefore the 2nd August 2018 becomes the ex-dividend date, as this is the first time the shares are trading 'ex-dividend' (i.e. if you buy the shares on the 2nd August 2018 you won't receive the 5p dividend.

    1st August 2018 close of play - ABC plc's registrar will look at shareholders at this specific point in time to determine where they need to pay the dividend to and how much to each person (depending on no. of shares they hold).

    2nd August 2018 - ex-dividend date because this is the first day the shares are trading without the right to receive the dividend

    31st August 2018 - ABC plc will pay the dividend to the shareholders/investment platforms as per their findings earlier in the month (about who to pay and how much etc.)
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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