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Q: If I buy a stock on the ex-dividend date do I get the dividend?

Q: If I buy a stock in after hours trading on the day before the

ex-dividend date, do I get the dividend?

Q: If I buy a stock in pre-market trading on the ex-dividend date,

If I buy a stock on the record date, do I get the dividend?

A: With normal dividends, no. In cases of a deferred ex-dividend

If I buy a stock in after hours trading on the day before the

ex-dividend date, do I get the dividend?

A: Yes, provided you hold the stock until at least the ex-dividend

date.

If I buy a stock in pre-market trading on the ex-dividend date,

do I get the dividend?

A: No. The ex-dividend date is the first day the stock trades

A: No. A stock need be held only until the ex-dividend date to

qualify for the dividend. Buy the stock before the ex-dividend

date and sell it on or after the ex-dividend date and you will

qualify for the dividend.

A: No. The ex-dividend date determines who gets the dividend.

Only the owners of the stock at the open of trading on the

ex-dividend date, including pre-market trading, get the

What does ex-dividend mean?

A: Ex-dividend means the stock is trading without the right to the

upcoming dividend. The ex-dividend date is the first day on

which a stock trades without the right to receive the dividend.

Ex-dividend date is the same as ex-date .

Can a record date be on a weekend?

A: Yes. But in such cases the first business day before the record

date is used for determining the ex-dividend date, except in

the case of a deferred ex-date.

Can an ex-dividend date be on a weekend?

A: No. An ex-dividend date can only be on a regular business

day when the stock exchanges are open.

Is the settlement date the same as the record date?

A: For daily stock trading, yes. For purposes of qualifying for a

normal dividend, the two are the same only if the trade date

was three trading days previous.

If the settlement date falls on the record date, will I get the

dividend?

A: If the settlement date of a trade to buy the stock settles on the

record date and the dividend follows normal dividend rules,

yes, as long as you don’t sell the stock until the day after you

bought it. If the dividend follows the rules necessitating a

deferred ex-date, you will get the dividend only if you hold the

stock until the deferred ex-dividend date.

Why doesn’t the company announce the ex-dividend date?

A: Some companies do, though most don’t. That’s because it is the stock exchange, not the company, that determines

the ex-date.

When is the dividend amount deducted from the share price?

A: The dividend amount is not actually deducted from the share

price. Rather, traders in the stock, recognizing the reduced

net asset value of the company on the ex-dividend date, adjust

the price they are willing to pay for the stock or are willing to

sell the stock for on that day, the result most often being

down about the dividend amount, but there is no exchange

rule or requirement that such an adjustment be made.

What is a regular dividend?

A: A regular dividend is one that is paid on a regular schedule,

A: A normal dividend is one that follows normal dividend rules.

It may or may not be a regular dividend.

What is a special dividend?

A: A special dividend is one that is not regularly scheduled. It

Do all dividends follow the same rules?

A: No. Dividends amounting to less than 25% of a company’s

A: Deferred ex-dividend dates are used on less than 1% of all

dividends declared.

What is a conditional dividend?

When will I receive my dividend?

A: If you hold the stock in streetname with a brokerage house,

you will receive the dividend on the payment date or, in

Does the three day settlement rule apply to record dates?

A: Yes. With normal dividends, the ex-dividend date accounts

for the three day settlement period to become a shareholder of

record. (With deferred ex-dividend dates, it does not.)

Does the three day settlement rule apply to ex-dividend dates?

A: No. The three day settlement period (T+3) does not apply to

ex-dividend dates. as they are real-time dates — buy before

the ex-date, you qualify for the dividend; buy on or after the

ex-date, you don’t qualify for the dividend.

Do I need to hold a stock for a full calandar quarter to qualify

for the full quarterly dividend?

A: No. If you qualify for a dividend, you receive the entire

dividend no matter how long you owned the stock.

Are dividends prorated to how long I own the stock?

A: Normal dividends are never prorated. In rare circumstances a prorated dividend is declared but, like normal dividends, if you qualify for a prorated dividend, you receive the entire prorated

dividend no matter how long you owned the stock. Click here

How many dividends does a company pay each year?

A: There are no rules limiting the number of dividend payments

a company may make. The number of dividends paid each

year depends on the dividend policy of the paying company.

Four (every three months) is the most common, twelve

(monthly) is the next most common, followed by two and one.

Does the size of the dividend have anything to do with how

dividend dates work?

A: Yes. Dividends amounting to less than 25% of a stock’s

trading price follow normal dividend rules, while dividends

representing 25% or more of a company’s stock price follow a

different set of rules.

A: Yes. All of the confusion and misconceptions about dividend dates can be eliminated by sourcing the information directly

from the exchanges themselves, not from well-meaning but