Investing

When do you have to hold stock to get dividend?

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  • Jul 13th, 2012 9:00 pm
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Deal Guru
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May 6, 2005
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When do you have to hold stock to get dividend?

When you're holding a dividend-paying stock? What is the earliest you can sell to earn the dividend?

- ex-div date
- day after ex-div date
- day divided gets paid
- some other date?
6 replies
Deal Expert
Aug 2, 2001
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Would purchasing a stock AFTER the dividend date be the best time? I've always thought they would go down after the dividend because if they didn't people with large sums of money (say $10,000+) would purchase the stock a couple days before, take the dividend, and then sell immediately after.

If the yield is 4% annually and you are paid quarterly that means you'd get 1%, which is more than enough to cover trading fees and give you a somewhat decent profit (especially if you do it with stocks every month).

I've never actually looked into this but always wondered...
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Jun 26, 2005
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TrevorK wrote:
Jul 13th, 2012 1:38 pm
Would purchasing a stock AFTER the dividend date be the best time? I've always thought they would go down after the dividend because if they didn't people with large sums of money (say $10,000+) would purchase the stock a couple days before, take the dividend, and then sell immediately after.

If the yield is 4% annually and you are paid quarterly that means you'd get 1%, which is more than enough to cover trading fees and give you a somewhat decent profit (especially if you do it with stocks every month).

I've never actually looked into this but always wondered...
A stock price usually drops by the same % of the dividend payout the day after.

The BEST time to buy a stock is when the stock is in a Demand zone where there is a high probability the price of the stock will go up. Dividend is not an indicator of when to buy a stock.
Deal Expert
Aug 2, 2001
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rfdrfd wrote:
Jul 13th, 2012 3:28 pm
A stock price usually drops by the same % of the dividend payout the day after.

The BEST time to buy a stock is when the stock is in a Demand zone where there is a high probability the price of the stock will go up. Dividend is not an indicator of when to buy a stock.
I've never heard of the term "demand zone" before, are you able to explain it? Is it some sort of formula that takes into account when the stock rises/falls so many times or something to determine what it seems to be able to hold to?
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Feb 25, 2012
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FiNaL WaR wrote:
Jul 13th, 2012 12:44 pm
on the div ex date (hold overnight obv) normally 2 business days before the dividend date

for example company X called a dividend on july 13th. you would have to buy on the 11th and hold overnight to the 12th. (price normally reflect the dividend)
Final War is incorrect. You do not have to hold it overnight on the ex-div. You can sell it anytime on or after the ex-div date. "ex-div" means that the "stock is trading without the divdend" and therefore can be sold with no consequence to the holder of the stock.

.
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Oct 2, 2006
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Jul 13th, 2012 9:00 pm

AntonyLingo wrote:
Jul 13th, 2012 7:59 pm
Final War is incorrect. You do not have to hold it overnight on the ex-div. You can sell it anytime on or after the ex-div date. "ex-div" means that the "stock is trading without the divdend" and therefore can be sold with no consequence to the holder of the stock.

.
yup my bad i mixed up another concept

antony is right.

here is my corrected post
before the div ex date (hold overnight obv) normally 2 business days before the dividend date

for example company X called a dividend on july 13th. you would have to buy on the 10th and hold overnight to the 11th. (price normally reflect the dividend)

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