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What is the Earliest I can sell stock and still receive dividend?
"Dividend is payable January 26, 2012 to common shareholders of record on December 29, 2011. The ex-dividend date is December 27, 2011."
According to this statement, what is the earliest hour I can sell this stock and still get paid the dividend?
Also what is the "Ex-dividend"?
7 Answers
- A nobodyLv 79 years agoFavorite Answer
The X-Date, if you buy stock on the X-Date you DO NOT get the dividend (X means without the dividend) therefore if you sell on the x-date you get the dividend since the buyer does not.
You can sell the stock as the owner on the X-Date = December 27, 2011
X-Dividend means the stock trades without the dividend.
Source(s): from the street - Anonymous4 years ago
those everybody is punctiliously f-ing stupid. you may purchase the inventory the day until now the ex-dividend date at 3:fifty 9 PM and sell it at 9:31 AM the subsequent morning and additionally you gets the dividend. The taxation of the dividend would be comparable to in case you held the inventory for 80 years. although, for the reason that everybody interior the international is conscious of that the inventory became procuring and advertising with dividend on the acquisition day and ex-dividend on the sell date, you are able to anticipate that the inventory drops via the quantity of the dividend. the thought the inventory may be $25 once you purchased it and $25 once you offered it is not genuine. it is an arbitrage that each and each precocious thirteen 3 hundred and sixty 5 days previous thinks of. It basically would not artwork and reasons you accounting worry, tax worry, transactions expenditures, and takes on uncompensated possibility. completely novice. completely dumb.
- Anonymous9 years ago
You can sell it at the market open on Dec. 27, 2011 and receive the dividend. If you sell any earlier than that you will not receive the dividend. Ex-dividend is the date on which the stock trades without the dividend. There is a 3 day settlement period for stock transactions. That is why there is the stock holders of record date. Once you sell the stock it takes 3 days to transfer title. But dividends go to the person that holds the stock before the ex-dividend date.
- JoeyVLv 79 years ago
Neither of the above answers is correct. You have to buy the stock on the day before the ex-dividend date and then you can sell it on the ex-dividend date and get the dividend.
Note that the stock price drops by the amount of the dividend on the ex-dividend date so there is no advantage in doing this.
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- Anonymous7 years ago
You have to own the stock before the ex date in order to qualify for the dividend. The same is true for stock splits. You have to own the stock before the ex date in order to receive the split stocks.
- 9 years ago
I believe the earliest you could sell would be 9:30am on Dec 28, 2011.
The dividend will be paid on Jan 26, to the owners of the company as of close of business on Dec 27.
- falsi fiableLv 79 years ago
December 30.
Ex-dividend date is the LATEST date you can BUY the stock to be eligible for a dividend.