Why do so many stocks go ex-dividend on 29 June?

[helpme]

I made an observation which is puzzling. I noticed that many stocks went ex-dividend on 29-June. Why is this date so popular for stocks to go ex-dividend? Anyone can make a plausible guess?

 

[skc]

Re: Why do so many stocks go Ex-dividend on 29June?

I made an observation which is puzzling. I noticed that many stocks went ex-dividend on 29-June. Why is this date so popular for stocks to go ex-dividend? Anyone can make a plausible guess?

Here's my guess...

Most stocks going ex-div on this date are trusts. In tax law, income from trusts are based on the financial year which the distribution is declared (in this case the record date). This is different to regular company dividends which are taxed in teh financial year based on the payment date.

29 June ex-div date means the record date is 30 June, or on the end of the financial year... so it makes kind of simple and neat in terms of the tax year.

 

[helpme]

Re: Why do so many stocks go Ex-dividend on 29June?

Here's my guess...

Most stocks going ex-div on this date are trusts. In tax law, income from trusts are based on the financial year which the distribution is declared (in this case the record date). This is different to regular company dividends which are taxed in teh financial year based on the payment date.

29 June ex-div date means the record date is 30 June, or on the end of the financial year... so it makes kind of simple and neat in terms of the tax year.

Thanks. Does going Ex-div on this date help to lower taxes or somehow save money in any way? Or is it just convenient accounting only?

 

[pixel]

Re: Why do so many stocks go Ex-dividend on 29June?

Thanks. Does going Ex-div on this date help to lower taxes or somehow save money in any way? Or is it just convenient accounting only?

If Franking Credits come into play, holders will benefit too. being able to apply the income to the current year rather than having to wait 12 more months..