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Example:

XYZ Corp pays a $0.25/share dividend - Ex date=1/15/13, Pay date 1/31/2013
I own 100 total shares of XYZ on 1/1/2013
I buy 50 shares of XYZ on 1/15/2013 at 12 PM (increasing shares to 150)
I buy 50 mor shares of XYZ on 1/15/2013 at 12 PM (increasing shares to 200)
I dispose of all 200 shares of XYZ by 4PM on 1/15/2013

On 1/31/2013, what is my dividend payment worth?

  • 25.00 (balance on start of ex date:1/15/2013)

  • 37.50 / 50.00 (balances during ex date:1/15/2013)

  • Nothing (because I didn't own it at the end of ex date: 1/15/2013)

  • Something else entirely

Dheer
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Michael
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1 Answers1

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You must own the shares prior to the ex-dividend date. Whatever you buy or sell on or after the ex-dividend day you will not receive dividends for.

So you would get $25 in dividends based on the 100 shares you owned before the ex-dividend date.

Victor
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