Ex-dividend date

[Paradiso]

According to the ASX (http://www.asx.com.au/research/dividends/process.htm)

The ex dividend date occurs four business days before the company's Record Date. To be entitled to a dividend a shareholder must have purchased the shares before the ex dividend date. If you purchase shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend.


I am confused, if someone sells their shares on the Ex Dividend date, with a 3 day settlement wouldn't the new owner of the shares be on the company register by the record date (4 business days after the ex dividend date)??

 

[Paradiso]

Re: Ex dividend date

An example is CBA.

They go ex-dividend on 14th Feb with the Record date on 18th Feb. If I sold CBA on 14th, t+3 means 14 + 15,16,17. On the 18th (record date) wouldn't the new owner be on CBA share registry?

 

[builder2818]

Re: Ex dividend date

According to the ASX (http://www.asx.com.au/research/dividends/process.htm)

The ex dividend date occurs four business days before the company's Record Date. To be entitled to a dividend a shareholder must have purchased the shares before the ex dividend date. If you purchase shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend.


I am confused, if someone sells their shares on the Ex Dividend date, with a 3 day settlement wouldn't the new owner of the shares be on the company register by the record date (4 business days after the ex dividend date)??

The ASX makes it pretty clear

 

[pixel]

Re: Ex dividend date

An example is CBA.

They go ex-dividend on 14th Feb with the Record date on 18th Feb. If I sold CBA on 14th, t+3 means 14 + 15,16,17. On the 18th (record date) wouldn't the new owner be on CBA share registry?

They give themselves time to update and check their register. It's much easier to hold back all tramsaction notices done on or after ex-div date, than it is to patch a late-coming pre-ex div trade into the database.

 

[Bill M]

According to the ASX (http://www.asx.com.au/research/dividends/process.htm)

The ex dividend date occurs four business days before the company's Record Date. To be entitled to a dividend a shareholder must have purchased the shares before the ex dividend date. If you purchase shares on or after that date, the previous owner of the shares (and not you) is entitled to the dividend.


I am confused, if someone sells their shares on the Ex Dividend date, with a 3 day settlement wouldn't the new owner of the shares be on the company register by the record date (4 business days after the ex dividend date)??

This question has been asked many times before. The ONLY date you should be concerned with is the EX DIVIDEND date. The record date is irrelevant as to who gets the dividend.

They go ex-dividend on 14th Feb with the Record date on 18th Feb. If I sold CBA on 14th

Again, get the record date out of the equation. In your case with CBA, you sell on the 14th. you should get the dividend. I watch this very closely myself when buying stocks. Take care and good luck.

 

[Paradiso]

Thanks for the replies. I guess it must work the way that you all are saying otherwise there would be huge hue and cry.

 

[iwbaukb]

Hey guys, i know this has been done to death, but one last question. Do I have to hold the shares for the entire day of the ex dividend date? For example if the ex-dividend date is the Friday the 4th of March, do I need to hold the dividend until 4pm that day, meaning that I can't sell shares until the following Monday? Or can I sell my shares at 10am on the 4th of March and still receive the dividend?

 

[skc]

Hey guys, i know this has been done to death, but one last question. Do I have to hold the shares for the entire day of the ex dividend date? For example if the ex-dividend date is the Friday the 4th of March, do I need to hold the dividend until 4pm that day, meaning that I can't sell shares until the following Monday? Or can I sell my shares at 10am on the 4th of March and still receive the dividend?

When a share goes ex-div today, you can sell anytime today and still be entitled to the dividend.

You will notice is that the share price has likely fallen by the amount of the dividend first thing in the morning. That is because people who buy that share this morning no longer receive the dividend, and so they value the share less than yesterday by that amount (all else being equal of course, and on a strong up day like today you will see share price actally goes up despite the dividend drop-off - like LLC today).